Systems and methods for prioritizing reconcilement information searches

ABSTRACT

Systems and methods are disclosed for assisting a check-cashing entity to efficiently and accurately locate relevant positive pay information or other reconcilement information regarding a check or other negotiable instrument that has been presented in association with a request to cash, deposit, use as payment or other otherwise accept the check or negotiable instrument. In various embodiments, when a plurality of potentially useful reconcilement information sources are selected for querying in association with a proposed check-cashing transaction from amongst a set of available reconcilement information sources, factors relating to the transaction, factors relating to characteristics of the information sources, and factors relating to preferences on the part of the check-cashing entity may be considered in order to select and prioritize the querying of information sources that are deemed likely to hold desired reconcilement information.

BACKGROUND OF THE INVENTION

1. Field of the Invention

This invention relates generally to data authentication, and, moreparticularly, to systems and methods for authentication of financialinstruments.

2. Description of the Related Art

Checks continue to be a popular medium of financial exchange. Manyindividuals who are issued checks from second parties, such as paychecksfrom their employers, prefer to cash the checks rather than to depositthem in a bank account before withdrawing the funds. For example, manypeople prefer to cash their paychecks at a grocery store orcheck-cashing establishment. Furthermore, individuals who do not havebank accounts in which to deposit checks often depend on cashing theirpaychecks, government checks, and other checks at such establishments.

Businesses that cash checks for their customers take a risk that if theyagree to cash a given check, they may be unsuccessful themselves inattempting to settle the check with the issuing bank. Forged checks,stolen checks, checks that have been fraudulently altered, and checkswritten on accounts with insufficient funds or on accounts that havebeen closed all contribute to losses sustained by entities that agree toaccept checks for cashing. Some check-cashing entities now chargeincreased fees for their check-cashing services in order to compensatefor losses due to the acceptance of fraudulent checks.

A check that is written by one party for cashing by another party isoften known as a “second-party check.” For example, a payroll checkissued by an employer to an employee and presented by the employee forcashing at a grocery store may be classified as a second-party check.Businesses that cash second-party checks face extra difficulties indetermining whether to accept a check presented to them for cashingbecause, in addition to assessing the identity and trustworthiness ofthe check presenter, they would like to be assured that the issuer ofthe check, who is typically not present, is in fact willing to authorizepayment of the check.

Positive pay information is information compiled by a check-issuer aboutchecks that the check-issuer has written against the funds in anaccount, often comprising information about a check number, issue date,payee name, and amount associated with a check. Thus, positive payinformation is similar in many respects to information that anindividual may record in his or her checkbook register about checks thathave been written.

Some check-issuers, especially those writing many checks, such as largeemployers and businesses, may make a copy of their positive payinformation available to the bank that holds their check account, withthe agreement that the bank is not authorized to release funds fromtheir check account other than for payment of those checks listed on theprovided positive pay file. When a check is presented to the bank forcashing, comparing information from the face of the check withinformation in the positive pay file helps the bank to avoid withdrawingfunds from the check-issuer's account for the payment of fraudulentchecks. For this and other reasons, the use of positive pay informationhas proven very beneficial to banks and to check-issuers.

Check-cashing entities that cash negotiable instruments of varioustypes, such as second-party checks, may also benefit from access topositive pay information for checks that have been presented to them forcashing. Accessing a positive pay file associated with a second-partycheck that has been presented for cashing is one method for checking onthe authenticity of the check before making a decision to accept thecheck for cashing. Finding a record in the positive pay file indicatingthat information from the presented check matches a check listing thatis authorized by the check-issuer may serve to increase confidence inthe legitimacy and “cashability” of the check. Finding a record in thepositive pay file indicating that the same check has already been paidmay serve to increase suspicion in the fraudulent nature of the checkand may decrease confidence in the “cashability” of the check. Thus,access to relevant positive pay information may help check-cashingentities more accurately assess the risk of proposed check-cashingtransactions.

However, when a bank accesses positive pay information for a check fromone of its own accounts before disbursing funds from that account, thedesired positive pay information for the account is often easilylocatable and readily accessible by the bank.

The situation is different for check-cashing entities, which may bepresented with checks drawn on a wide variety of accounts and issued bya wide variety of check issuers, both known and unknown to thecheck-cashing entity. The check-cashing entity may thus face much moredifficulty in attempting to locate and to access the desired positivepay information to help in assessing the risk of approving proposedcashing transactions.

A check-cashing entity, or a check authentication service working on itsbehalf, may negotiate in advance with a variety of check issuers orother positive pay information sources to arrange for access, sometimesin exchange for a fee, to the positive pay information available fromthe sources. Thus, relations may be established with a number ofpositive pay information sources allowing for queries to be sent to oneor more of the sources regarding a check presented in association with aproposed check-cashing transaction.

In association with some proposed check-cashing transactions, it may beeasy to identify and to access a single positive pay information sourcethat stores the desired positive pay information. In other situations,when a single, definitive source of positive pay information for apresented check is not readily identifiable, a plurality of positive payinformation sources may be accessed in an attempt to locate the desiredpositive pay information.

However, positive pay information inquiries associated with proposedcheck-cashing transactions frequently take place while an individualpresenting a check waits for the check to be accepted and cashed. Givena large number of positive pay information sources that may potentiallyhold desired positive pay information for a presented check and alimited amount of time typically allocated for positive payauthentication of the check, an undirected search of the availablepositive pay sources may fail to locate appropriate positive payinformation for the check in question within an acceptable time frame.Furthermore, since only a fraction of available positive pay informationsources typically store information relevant to a given check, in anundirected search, valuable system resources, as well as time and money,may be expended for querying positive pay information sources that arenot likely to hold the desired information.

Thus, benefits that may be afforded to a check-cashing entity by anability to access valuable positive pay information from a variety ofsources when a single, definitive source cannot be identified may beundermined by an inability to access the sources in a selective andefficient manner.

SUMMARY OF THE INVENTION

Systems and methods are disclosed for implementing a universal checkauthentication system that allows a check-cashing entity to transmitrequests for authentication of checks and other negotiable instrumentsissued by a variety of issuers that have been presented to thecheck-cashing entity for cashing or other form of acceptance. Theuniversal check authentication system accepts information about theproposed check-cashing transaction and uses the information to access anappropriate source of authentication for the check or other negotiableinstrument. In various embodiments, the check authentication systemobtains positive pay information from a variety of sources and accessespositive pay information associated with a presented check in responseto an authentication request.

For example, systems and methods are disclosed for selecting positivepay information sources to query for positive pay information about agiven check from amongst a set of available positive pay informationsources. In some embodiments, selected positive pay information sourcesare prioritized so that sources determined most likely to store thedesired positive pay information and/or to satisfy other preferences, aswill be described in greater detail below, may be accessed and queriedbefore positive pay information sources determined to be less likely tosatisfy store the desired information. Thus, the disclosed systems andmethods direct a search for positive pay information to increase theaccuracy and efficiency of the search.

A check authentication system may carry out a search for positive payinformation associated with a given check on behalf of a check cashingentity to whom the check has been presented for cashing. Positive payinformation for the check may provide an indication as to whether thecheck is legitimate and the check-issuer is willing to honor the check.Thus, obtaining positive pay information for the check may assist thecheck-cashing entity to assess a level of risk associated with theproposed check-cashing transaction and to reduce the acceptance offraudulent checks.

When a single, definitive source of positive pay information for apresented check is not readily identifiable, a plurality of positive payinformation sources may be accessed in an attempt to locate the desiredpositive pay information. Using the described system and methods, acheck authentication system undertaking a search for positive payinformation on behalf of a check-cashing entity may customize the searchby considering factors relating to: characteristics of the availablepositive pay information sources, characteristics of the proposedcheck-cashing transaction, and/or preferences of the check cashingentity. Characteristics of an available positive pay information sourcemay comprise, for example, data about a fee or other monetary costassociated with accessing information from the source, data about anaverage response time for positive pay queries sent to the source, dataabout check-issuers whose positive pay information is made availablefrom the source, data about how up-to-date information available fromthe source is kept, and the like. Characteristics of the proposedcheck-cashing transaction may comprise, for example, data about a checkamount, check type, issue date, payee name, check-cashing entity typeand location, and the like. Preferences of the check-cashing entity maycomprise, for example, agreements between the check-cashing entity andthe check authentication system regarding preferences that thecheck-cashing entity has expressed regarding an amount of time to beallotted for a given positive pay information search, an amount of moneyto be spent on a given positive pay information search, and a level ofrisk regarding accepting checks for cashing that is acceptable to thecheck cashing entity.

Taking these or other desirable factors into account, the checkauthentication system selects which of a plurality of available positivepay information sources to access, and in which priority, in order toobtain the desired positive pay information.

An embodiment of a process for selecting at least one source of positivepay information to query in association with a proposed check-cashingtransaction is disclosed. The embodiment of the process comprises theacts of: receiving a request from a check-cashing entity for positivepay status information for a check presented to the check-cashing entityin association with a proposed check-cashing transaction; identifyingtwo or more available positive pay information sources; accessinginformation about at least one of the set consisting of: characteristicsof the available positive pay information sources and preferences of thecheck-cashing entity; and selecting, based at least in part on therequest received from the check-cashing entity and on the accessedinformation, at least one of the available positive pay informationsources to query.

An embodiment of a check authentication system is disclosed. Theembodiment of the check authentication system comprises a data interfacethat is configured to receive from a check-cashing entity a request forpositive pay authentication in association with a proposed check-cashingtransaction. The request comprises information about characteristics ofthe proposed check-cashing transaction. The embodiment of the checkauthentication system further comprises a computer-accessible storagemedium that is configured to store information about characteristics ofone or more positive pay information sources and information aboutpreferences expressed by the check-cashing entity. The embodiment of thecheck authentication system further comprises a processor that isprogrammed to receive information about the request for positive payauthentication from the data interface, to access at least a portion ofthe stored information from the computer-accessible storage medium, andto select, based at least in part on the information from the datainterface and the information from the computer-accessible storagemedium, a subset of the positive pay information sources to access in asearch for positive pay information associated with the proposedcheck-cashing transaction.

An embodiment of a point-of-sale device is disclosed that comprises aninput system that is configured to obtain information about a proposedcheck-cashing transaction, and a communications system that isconfigured to send at least some of the obtained information about theproposed check-cashing transaction to a remote system for a positive payauthentication. The communications system is further configured toreceive from the remote system a positive pay authentication resultassociated with the proposed check-cashing transaction, wherein thepositive pay authentication result is based at least in part on positivepay information accessed from a plurality of positive pay informationsources selected for querying from amongst a set of at least twoavailable positive pay information sources.

A process for reducing risk associated with accepting a check offered ata check-cashing transaction is disclosed. The embodiment of the processcomprises the acts of: entering into an agreement with a checkauthentication system in which the check authentication system agrees toperform positive pay check authentications; informing the checkauthentication system of preferences associated with positive pay checkauthentications; transmitting a positive pay authentication requestassociated with a proposed check-cashing transaction to the checkauthentication system; transmitting information associated with theproposed check-cashing transaction to the check authentication system;receiving from the check authentication system data indicative of apositive pay authentication result, wherein the positive payauthentication result is based at least in part on information obtainedfrom at least one positive pay information source selected from at leasttwo available positive pay information sources, wherein the selection isbased at least in part on the transmitted information associated withthe proposed check-cashing transaction and on the preferences associatedwith positive pay authentications; and determining whether to accept thecheck offered at the proposed check-cashing transaction, based at leastin part on the positive pay authentication result.

An embodiment of a method of participating in a selection of positivepay information sources for use in conjunction with a request forpositive pay authentication is disclosed. The embodiment of the methodcomprises the acts of: providing to a check authentication systeminformation about preferences regarding positive pay authentications tobe performed by the check authentication system; providing to the checkauthentication system information about a proposed check-cashingtransaction for which positive pay authentication is requested; andreceiving from the check authentication system a message indicative of apositive pay authentication result that is aggregated from positive payinformation accessed from at least two positive pay information sources,wherein the sources are selected based at least in part on at least oneof the set consisting of: the provided information about preferences andthe provided information about the proposed check-cashing transaction.

An embodiment of a method is disclosed for participating in a selectionof positive pay information sources for use in conjunction with arequest for positive pay authentication. The embodiment of the methodcomprises providing to a remote system information about characteristicsassociated with a source of positive pay information for the purpose ofassisting the remote system to select positive pay information sourcesto query from amongst a plurality of available positive pay informationsources, wherein the selection is based at least in part on the providedinformation about the characteristics of the positive pay informationsource.

An embodiment of a positive pay information source is disclosed thatprovides to a check authentication system information useful forassisting the check authentication system in a selection of at least twopositive pay information sources to query for authentication of a check.

An embodiment of a reconcilement information source is disclosed thatcomprises: a computer-accessible storage medium configured to storereconcilement information about negotiable instruments and acommunications system configured to transmit data about thereconcilement information source to a remote system that conductssearches for reconcilement information, wherein the communicationssystem transmits the data for the purpose of assisting the remote systemto determine whether to query the reconcilement information source in asearch for reconcilement information.

An embodiment of a process for evaluating the likelihood of a checkbeing honored by an issuer of the check is disclosed. The embodiment ofthe process comprises the acts of identifying a plurality of positivepay information sources that comprise information about checks thatcheck-issuers are willing to honor and determining a prioritized orderfor querying at least two of the positive pay information sources inorder to enhance the speed of an evaluation of a check that has beenpresented for cashing, wherein the determination of the prioritizedorder is based at least in part on information received from at leastone of the positive pay information sources.

An embodiment of a reconcilement information source is disclosed thatcomprises a computer-accessible storage medium configured to storereconcilement information and a communications system configured totransmit data to a remote system for the purpose of enabling the remotesystem to select reconcilement information sources in association withrequests for reconcilement authentication. The data comprisesinformation about at least one of the set consisting of: at least oneissuer of negotiable instruments associated with the reconcilementinformation, at least one account identifier associated with thereconcilement information, at least one negotiable instrument typeassociated with the reconcilement information, a location associatedwith the reconcilement information source, a measure of size of thereconcilement information source, a measure of response speed of thereconcilement information source, a measure of frequency at which thereconcilement information is updated, and a monetary cost associatedwith making a reconcilement information request.

An embodiment of a system for selecting at least one source of positivepay information to query in association with a proposed check-cashingtransaction is disclosed. The system comprises: means for receiving arequest from a check-cashing entity for a positive pay authentication ofa check presented to the check-cashing entity in association with aproposed check-cashing transaction; means for identifying one or moreavailable positive pay information sources; means for accessinginformation about at least one of the set consisting of: characteristicsof the available positive pay information sources, characteristics ofthe proposed check-cashing transaction, and preferences of thecheck-cashing entity; and means for selecting, based at least in part onthe request received from the check-cashing entity and on the accessedinformation, at least one of the available positive pay informationsources to query.

For purposes of summarizing the invention, certain aspects, advantagesand novel features of the invention have been described herein. It is tobe understood that not necessarily all such advantages may be achievedin accordance with any particular embodiment of the invention. Thus, theinvention may be embodied or carried out in a manner that achieves oroptimizes one advantage or group of advantages as taught herein withoutnecessarily achieving other advantages as may be taught or suggestedherein.

BRIEF DESCRIPTION OF THE DRAWINGS

A general architecture that implements various features of the inventionwill now be described with reference to the drawings. The drawings andthe associated descriptions are provided to illustrate embodiments ofthe invention and not to limit the scope of the invention. Throughoutthe drawings, reference numbers are re-used to indicate correspondencebetween referenced elements.

FIG. 1 is a high-level block diagram depicting one embodiment of acentralized check authentication system.

FIG. 2A depicts a first embodiment of a table of positive payinformation.

FIG. 2B depicts a second embodiment of a table of positive payinformation.

FIG. 3 is a block diagram depicting one embodiment of a checkauthentication system with a positive pay router.

FIG. 4A is a block diagram of one embodiment of a system that allows acheck authentication system to access externally stored positive payinformation.

FIG. 4B is a block diagram of one embodiment of a system that allows acheck authentication system to access internally stored positive payinformation.

FIG. 5 is a block diagram depicting one embodiment of a checkauthentication system with multi-tiered positive pay routing tables.

FIG. 6 is a flowchart depicting one embodiment of a process for using arouting table to access desired positive pay information.

FIG. 7A is a flowchart depicting one embodiment of a process forcollectively assessing positive pay information from a plurality ofpositive pay information sources.

FIG. 7B is a diagram depicting exemplary factors that may influence aprocess to identify and order positive pay information sources forauthentication of a presented check.

FIG. 7C is a diagram depicting exemplary factors that may influence aprocess to determine when to continue a search for positive payinformation in association with authentication of a presented check.

DETAILED DESCRIPTION OF THE EMBODIMENTS

Check fraud is a severe problem within the check-cashing and payday loanindustries. Various features of the invention provide entities that cashchecks, such as grocery stores, convenience stores, and check-cashingbusinesses, with systems and methods for approving a greater portion oflegitimate proposed check-cashing transactions without incurring acorresponding increase of returned checks or fraud.

One difficulty with accepting checks for cashing is that often checkspresented for cashing, such as payroll checks, are second-party checks.Second-party checks generally refer to checks that are issued by a firstparty, sometimes known as a payor, to a second party, sometimes known asa payee, and that are presented by the payee for cashing, forpurchasing, for deposit, for other exchange, for a combination of someor all of the foregoing, or form some other form of acceptance.

Since a second-party check is written by someone other than the personpresenting the check for cashing, a check-cashing entity often desiresto be assured, not only that the check presenter is trustworthy and isbeing accurately identified, but also that the check is authentic,namely, that the presenter is the intended payee of the check and thatthe check is legitimate and is likely to be successfully settled bypayor's bank.

Such authentication of the check item may be carried out using a numberof different systems and methods. For example, special marks, codes, orother indicia that have been imprinted, embedded, or encoded on thecheck may provide a level of confidence that a check is authentic. Asanother example, positive pay information may sometimes be used toauthenticate a check presented for cashing.

Positive pay information, when made available by a given check-issuer,comprises information about checks that the check-issuer has written, inmuch the same way that an individual's check register lists informationabout checks that the individual has written from a given account. Thus,in various embodiments, positive pay information for a given check maycomprise at least one of: a payee name, an amount, and issue date, anidentifier for the check, and a status code, such as an indication as towhether the check has already been paid.

A check-issuer who compiles a file of positive pay information mayfrequently make the positive pay information file available to the bankthat holds his or her checking account, with the agreement that onlychecks listed in the file are authorized for payment. When the banksubsequently receives a request to settle a check that is presented asbeing issued from the account, the bank may compare information from thecheck with the file of positive pay information received from thecheck-issuer in order to determine if the presented check is authorizedfor payment. Thus, consulting the positive pay information file helpsthe bank to avoid withdrawing funds from the check-issuer's account forpayment of fraudulent checks.

When positive pay information is also made available to check-cashingentities, the check-cashing entities may use the positive payinformation to help reduce their incidence of accepting fraudulentsecond-party checks for cashing. Checks that can be verified usingpositive pay information are often perceived as posing less risk to thecheck-cashing entity and may thus be more frequently accepted whenpresented for cashing. This increased acceptability of checks may beespecially advantageous to payees who do not have bank accounts and whowant to cash their checks, including their payroll checks, atcheck-cashing entities.

However, although banks and check-issuers may be willing to makepositive pay information available to check-cashing entities in order tofurther reduce exposure to fraudulent check cashing attempts, acheck-cashing entity may lack the resources to individually locate andcontact an appropriate source of positive pay information for each checkpresented to them for cashing. For example, a check-cashing entity maylack the resources to identify the appropriate source of positive payinformation for a given check, may lack the communications resources tocontact the information source in a timely manner, may find itcumbersome to deal with positive pay information accessed according to avariety of different protocols and stored in a variety of differentformats, and/or may not wish to establish and maintain relationshipswith the wide variety of positive pay information sources that may berelevant to checks that it may receive. Thus, as methods for check fraudcontinue to become more sophisticated, authenticating checks usingpositive pay information becomes an increasingly complex task that maytax the resources of check-cashing entities.

A centralized check authentication system that oversees and managesauthentication for checks and other negotiable instruments on behalf ofcheck-cashing entities is described. In particular, a checkauthentication system that provides access to desired positive payinformation or other reconcilement information for check-cashingentities is described. In conjunction with the described checkauthentication system, a check-cashing entity is able to receivepositive pay information for checks and other negotiable instrumentsfrom multiple issuers and from multiple other sources of positive payinformation by accessing a single check authentication system.

As will be apparent to one of ordinary skill in the art, many of thedisclosed features may be used without others, and may be implementeddifferently than described herein. For example, although describedprimarily in the context of a face-to-face check-cashing environment forsecond-party checks, the various inventive features are also useful inother situations in which an entity accepts an unknown financialinstrument as payment for goods and/or services, or for deposit,cashing, or exchange.

For example, many of the disclosed features may apply to other types ofchecks and negotiable instruments, such as, but not limited to:third-party checks, other personal checks, corporate checks, payrollchecks, convenience checks, company insurance refund checks, tax refundchecks, Social Security checks, other government-issued checks,traveler's checks, bank checks, official checks, convenience checks,money orders, and other value-carrying papers, or other types ofcashable financial instrument, such as check cards, traveler's checkcards, payroll cards, government-issued payment cards, and the like. Itis to be understood that the use of the term “check” in the context ofthis disclosure may refer to any of the above or other types ofnegotiable instrument.

In association with some of the aforementioned types of negotiableinstruments, it may not be customary to use the term “positive pay” todescribe reconcilement information. As used herein, reconcilementinformation comprises information that is descriptive of issuednegotiable instruments and of one or more of their characteristics so asto be useful in authenticating the legitimacy of the instruments. Thus,although described in terms of checks being cashed and beingauthenticated by referring to positive pay information, the systems andmethods described herein are contemplated as being applicable and usefulfor various forms of reconcilement information associated with variousforms of negotiable instruments being presented for acceptance forvarious types of transactions.

Furthermore, although described with respect to an “individual”presenting a check for cashing, the systems and methods may apply to agroup or other entity wishing to cash a financial instrument. Thesystems and methods may also apply to transactions executed in part orin their entirety using a communications network such as the Internet,or other system configured to facilitate financial transactions. Thefollowing description is thus intended to illustrate, and not to limitthe claimed systems and methods.

FIG. 1 is a high-level block diagram depicting one embodiment of acentralized system for check authentication. As shown in FIG. 1, one ormore check-cashing entities 105 are configured to communicate with aremote check authentication system 100 that communicates with one ormore sources of positive pay information 110, which may be local orremote. The check-cashing entity 105 communicates with the checkauthentication system 100 to request authentication services inconnection with a check or other negotiable instrument that is presentedto the check-cashing entity 105 for cashing, for deposit, in exchangefor goods or services, or for a combination of the foregoing reasons.

A check-cashing entity 105 may be, for example, a grocery store,convenience store, specialized check-cashing business, or other retailor merchant facility that wishes to provide second-party or othercheck-cashing services to its customers. In other embodiments, thecheck-cashing entity may be a pawnshop, resort, casino, or otherestablishment that wishes to make cashing checks convenient for itspatrons. In still other embodiments, the check-cashing entity 105 may bea financial institution or non-bank financial institution (NBFI) such asa specialized business that offers check-cashing or money exchangeservices to individuals wishing to cash checks, possibly along withrelated services such as payday loans, local and overseas money wiring,and the like. In some embodiments, the check-cashing entity 105 may be akiosk, stand, or other manned or unmanned location configured to providecheck-cashing services. In yet other embodiments, the check-cashingentity 105 may be one or more individuals offering to accept checksand/or other negotiable instruments for cashing, deposit, purchase,exchange, or other forms of acceptance. Furthermore, the check-cashingentity 105 may be operated as a website, Internet-based enterprise, orother remote communications network that accepts checks and/or othernegotiable instruments for cashing, deposit, purchase, exchange, orother forms of acceptance.

In one embodiment, the check-cashing entity 105 communicates with thecheck authentication system 100 using a dial-up communications medium orother suitable medium for accessing the Internet or other network ofcomputers. In other embodiments, the check-cashing entity 105communicates with the check authentication system 100 using acommunications medium that may comprise, by way of example, a VirtualPrivate Network (VPN), dedicated communication lines such as T1 or framerelay for host-to-host connection, or other combination of telephonenetworks, wireless data transmission systems, two-way cable systems,customized computer networks, interactive kiosk networks, automaticteller machine networks, interactive television networks, and the like.In other embodiments, the check-cashing entity 105 communicates with thecheck authentication system 100 using other technologies.

In the embodiment shown in FIG. 1, the check-cashing entity 105 requestsauthentication of the check from the check authentication system 100,based at least in part on positive pay information for the presentedcheck. Positive pay information provides a useful indication as to thelikelihood of a presented check being honored by the check-issuer. Thecheck-cashing entity 105 may present its check authentication requeststo the centralized check authentication system 100, without interactingdirectly with the actual source 110 of the positive pay information. Ifthe check authentication system 100 replies that the positive payinformation associated with the check indicates that the check islegitimate and cashable, the check-cashing entity 105 may accept thecheck and may pay an equivalent amount of cash, minus any feesassociated with the transaction, to an individual who is presenting thecheck.

In some embodiments, the check authentication system 100 may operate asone or more components of a larger system that provides additionalcheck-related services. For example, the check authentication system 100may be part of a system that provides risk assessment services forcheck-related transactions. In some embodiments, positive payinformation or other authentication information retrieved by the checkauthentication system 100 may be used to determine a positive-payrelated risk score that may be used in turn to assign a risk score tothe transaction. In some embodiments, the check authentication system100 may be part of a system that provides other additional services forcheck-cashing transactions, such as guaranteeing checks, purchasingunsettled checks, presenting checks for settlement and/or providingcollection services for returned checks. For ease of description,however, and in order to focus on novel aspects of the systems andmethods disclosed, the check authentication system 100 will be describedhenceforth without such additional check-related services.

In one embodiment, when a check is presented for cashing, information isextracted from the face of the check using at least one of: electronicor magnetic imaging, scanning, optical character recognition, magneticstripe reading, other card-scanning technologies, visual inspection, andother data input technologies. The extracted information may be used toaccess associated information in a positive pay file 200, as will bedescribed in greater detail in the remainder of this disclosure. Once anassociated positive pay record is located for the presented check, ifsuch a record is found to exist, information stored in the positive payrecord may be compared with information extracted from the face of thecheck and, in some embodiments, with information from other sourcesassociated with the proposed check-cashing transaction. Comparinginformation from the presented check with information from the positivepay file 200 may enhance confidence that the presented check is a bonafide, unaltered, cashable check.

In the embodiment depicted in FIG. 1, the check authentication system100 communicates with one or more sources of positive pay information110, and authenticates checks based at least in part on informationstored in positive pay files 200 available from the positive payinformation sources 110. The positive pay information sources 110 may,in various embodiments, be check-issuer such as employers, may be banksor other financial institutions that manage accounts for thecheck-issuers, may be payroll processors, or may be other third-partyproviders of positive pay information. A positive pay information source110 may provide access to positive pay files 200 that it maintains foraccounts that it owns or manages, or for accounts for which it hasnegotiated access to positive pay information.

In one embodiment, the check authentication system 100 communicates withthe remote positive pay information source 110 using a communicationssystems such as a dial-up communications medium or other suitable mediumfor accessing the Internet or other network of computers. In otherembodiments, the check authentication system 100 communicates with thepositive pay information source 110 using a communications medium thatmay comprise, by way of example, a Virtual Private Network (VPN),dedicated communication lines such as T1 or frame relay for host-to-hostconnection, or other combination of telephone networks, wireless datatransmission systems, two-way cable systems, customized computernetworks, interactive kiosk networks, automatic teller machine networks,interactive television networks, and the like. In other embodiments, thecheck authentication system 100 communicates with the positive payinformation source 110 using other communications system technologies.

As depicted in FIG. 1, in some embodiments, the check authenticationsystem 100 communicates with positive pay information sources 110 toaccess information from positive pay files 200 that are storedexternally, such as positive pay information made available directlyfrom a check-issuer, the check-issuer's bank, or a third-party such aspayroll processor or other positive pay information service provider.

In some embodiments, the check authentication system 100 obtains copiesof positive pay files 200 from one or more check-issuers and othersources of positive pay information 110, including, but not limited to,employers, payroll processors, government entities, and the like, andstores the positive pay files 200 internally for quick access duringauthentication requests associated with check-cashing transactions. Invarious embodiments, the internal copy of the positive pay file 200stored at the check authentication system 100 is kept current withupdates.

Whether positive pay information is maintained internally or externallyto the check authentication system 100, or as a combination of the two,the check authentication system 100 benefits from an ability to quicklyand accurately access positive pay information from disparate sources.

With respect to a variety of different components associated with thecheck authentication system 100 and described herein, the components maybe embodied as computer program logic configured to execute on one ormore computer processors. In one embodiment, the program logic mayadvantageously be implemented as one or more modules. The modules maycomprise, but are not limited to, any of the following: software orhardware components such as object-oriented components, classcomponents, task components, processes methods, functions, attributes,procedures, subroutines, segments of program code, drivers, firmware,microcode, circuitry, data, databases, data structures, tables, arrays,or variables.

The one or more computer processors associated with the checkauthentication system 100 may comprise, by way of example, personalcomputers (PCs), mainframe computers, other processors, program logic,or other substrate configurations representing data and instructions,which operate as described herein. In other embodiments, the processorsmay comprise controller circuitry, processor circuitry, processors,general purpose single-chip or multi-chip microprocessors, digitalsignal processors, embedded microprocessors, microcontrollers and thelike.

The check authentication system 100 may be one component of a morecomprehensive business entity that offers services related to riskmanagement and/or transaction handling for check-related or otherfinancial transactions. The check authentication system 100 may also beimplemented as computer software on a computer operated by the checkauthentication system 100 or the check-cashing entity 105, or on aserver for a networked group of check-cashing entities 105, such as achain of check-cashing stores, or as a centralized system that providesservices to entities who subscribe to their services, or in some othersuitably configured manner.

FIGS. 2A and 2B depict two embodiments of repositories that storepositive pay information on a computer-accessible storage medium. Therepositories are depicted here in the form of tables, sometimes known aspositive pay lists or positive pay files 200. In both FIG. 2A and FIG.2B, the positive pay files 200 comprise records of information aboutchecks. In various embodiments, a record of the positive pay file 200corresponds to a check written by a check-issuer to be drawn againstfunds in a given bank account or other source of funds.

As was described in greater detail above, a check-issuer, such as anindividual or an employer, may make positive pay information aboutchecks that it has issued available to its bank and/or to other parties.Using positive pay information from the check-issuer, the bank may moreeasily identify checks that are counterfeit, fraudulently altered,stolen, voided, already paid, subject to a stop-payment order, or areotherwise not intended to be paid by the check-issuer. The bank may thusavoid accepting an unauthorized check and withdrawing funds from thecheck-issuer's account to settle such checks. Furthermore, when positivepay files 200 are made available to check-cashing entities 105 who areasked to cash, to deposit, or to otherwise accept second-party and otherchecks, the records of the positive pay file 200 comprise informationthat may similarly aid the check-cashing entities 105 in distinguishingbetween checks that the check-issuer authorizes for payment, and willthus likely be honored by the check-issuer, and checks that are notauthorized to be paid.

Although the examples provided in FIGS. 2A and 2B illustrate positivepay information for checks, it will be familiar to one of ordinary skillin the art that positive pay or other reconcilement information forother types of negotiable instruments or promissory payments may beadditionally or alternatively be accessed by the check authenticationsystem 100 for providing authentication information to check-cashingentities 105. For example, a provider of traveler's checks and/ortraveler's check cards may make available a file of informationcomprising identifiers for purchased traveler's checks, amounts of thepurchased traveler's checks, names and/or other identifiers forpurchasers of the traveler's checks, as well as other information, suchas, for example, date and location of purchase and/or cashing.Similarly, files of reconcilement information may be kept for issuedmoney orders, official checks, various types of government and corporatechecks, and the like, which may be issued in paper, electronic, card, orother formats.

FIG. 2A depicts one embodiment of a positive pay file 200 that may beused to store information from a single check-issuer about checks issuedfrom a single checking account. As depicted in FIG. 2A, the positive payfile 200 comprises records organized as a set of fields. In FIG. 2A, arecord comprises a check number field 211, an issue date field 212, anamount field 213, a payee name field 214, and a status field 215.

The check number field 211 stores an identification number, sometimesknown as a sequence number, for a check or other financial instrumentassociated with the record. In the embodiment shown in FIG. 2A, a searchfor positive pay information associated with a check presented forcashing identifies the desired positive pay record in the positive payfile 200 by locating a record with a check number field 211 value thatmatches a check number on the presented check. In other embodiments, oneor more other fields are used as a key for locating a desired record.

The issue date field 212 stores a record of the date on which theassociated check was issued, and may be useful for helping to identify agiven check.

The amount field 213 stores a record of the amount for which the checkwas written. Comparing the value in the amount field 213 with an amountwritten on the face of the presented check enhances a check-cashingentity's 105 ability to detect checks whose amount information has beenaltered fraudulently.

The payee name field 214 lists the name of the person or entity to whomthe check was issued and may be compared to a payee name written on thepresented check, thereby enhancing the check-cashing entity's 105ability to detect a check with an altered payee notation. Furthermore,in one embodiment, information in the payee field 214 may be compared toinformation obtained from a driver's license or other source ofidentification information available for the check presenter. In variousembodiments, additional fields comprising identifying information forthe payee may also be stored in the positive pay file 200 record. Forexample, address information for the payee may be stored for comparisonto an address offered by the check presenter. Similarly, a SocialSecurity number, employee identification number, or other identifier forthe payee may be stored in the positive pay file 200 record and may beused to enhance verification that the check presenter is the intendedpayee of the check.

The embodiment of the positive pay file 200 depicted in FIG. 2A furthercomprises a status field 215. In some embodiments, the status field 215comprises information about a current status associated with the checkor about activity relevant to the check that occurs after the check isissued. For example, in one embodiment, the status field 215 may store anotation such as AUTH to indicate that the check associated with therecord is authorized for cashing. The status field 215 may store anotation such as PAID to indicate that the check associated with therecord has already been paid and should not be authorized for cashing.The status field 215 may store a notation such as VOID or STOLEN or STOPto indicate that the check associated with the record has been,respectively, voided, stolen, or that the bank has been instructed tostop payment on the check, and that the check is thus not authorized forcashing.

In other embodiments, other codes, formats, and/or systems ofcategorization may be used to express status information about the checkassociated with the record. For example, in some embodiments, the statusfield 215 may store one of two notations, such as PAID and UNPAID, whichin some embodiments may be implemented as a single binary bit within thepositive pay record. As another example, a positive pay informationsource 110 may maintain its positive pay files 200 as lists of checksthat are currently authorized for payment. In such embodiments, recordsmay be removed from the positive pay file 200 when the associated checkis paid, and the status field 215 may not be needed.

In some embodiments, the status field 215 may be organized as a logpertaining to the associated check, with notations of activities andassociated dates. For example, an AUTH notation in the status field 215may be accompanied by an associated date of issuance, and subsequently aPAID notation may be added with an associated date of payment. Asanother example, instances when a check is presented for cashing, but isrefused, based on information in the positive pay file 200 or for otherreasons, may be noted in the status field 215 and may alert a systemadministrator to a possibility of fraudulent activity. In otherembodiments, other systems may be used to provide current, useful statusinformation for the checks described in the positive pay file 200.

The wide variety of possible systems for coding and notation of checkstatus information may present a problem for check-cashing entities 105to properly access and interpret directly. Check-cashing entities 105may therefore benefit from engaging the check authentication system 100,with its typically greater processing power and more extensive networkof connections with positive pay information sources 110, to serve as anintermediary for acquiring and interpreting the desired positive payinformation.

FIG. 2B depicts one embodiment of a positive pay file 200 that may beused to store positive pay information compiled for multiple checkingaccounts at multiple banks and issued by multiple check-issuers. Forexample, the positive pay file 200 of FIG. 2B may describe a positivepay file 200 made available by a company that manages payroll accountsfor a number of large business employers and that makes positive payinformation for the large businesses available for check verificationpurposes. As another example, the positive pay file 200 of FIG. 2B maydescribe an internally stored positive pay file 200 that is compiled bythe check authentication system 100 from copies of one or more positivepay files 200 received from one or more positive pay information sources110. In other embodiments, a positive pay file 200 may comprise positivepay information from multiple check-issuer accounts at a single bank, ormay comprise other sets of positive pay information.

As was the case with the embodiment shown in FIG. 2A, the positive payfile 200 depicted in FIG. 2B comprises records organized as a set offields, and a record comprises the check number field 211, the issuedate field 212, the amount field 213, the payee name field 214, and thestatus field 215.

In addition to the fields 211-215 described above, the positive pay file200 depicted in FIG. 2B, which stores records for multiplecheck-issuers, further comprises three fields 208-210 that help toidentify a bank account and check-issuer associated with a given record.As depicted in FIG. 2B, a payor name field 208 comprises a name or otheridentifier for a company, individual, or other entity that issued thecheck associated with the record. In embodiments where the positive payfile 200 comprises information about checks written by a singlecheck-issuer or where other fields adequately identify an account, apayor field 215 may be not needed and not used.

As further depicted in FIG. 2B, a bank number field 209, which stores abank routing number or other bank identifier, and an account numberfield 210 store information useful for identifying a bank account onwhich the presented check is to be drawn. In various embodiments, thebank number field 209, account number field 210, and check number field211, may be read from a MICR line on the face of the presented check andmay be used in combination to identify a record associated with thecheck.

As will be described in greater detail below, information read from theface of a presented check, such as a check amount, issue date, payeename, and the like, may be compared with information stored in anassociated record in the positive pay file 200 in order to determine ifthe check is listed as being authorized for payment. For example, acheck that is listed in the positive pay file 200 as having already beenpaid is typically not authorized to be paid again.

As checks are accepted for cashing, a notification may be sent to thepositive pay information source 110, and an updated notation may be madein the status field 215 signifying that the item has now been paid. Ifthe same check, or what appears to be the same check, is presented againfor cashing, the notation in the status field 215 will show that thecheck has already been paid, implying that at least one of the checks isa copy or forgery. Similarly, a notification may be sent to the positivepay information source 110 regarding a potentially fraudulent attempt tocash the check, and an updated notation to that effect may be made inthe status field 215.

FIGS. 2A and 2B depict two embodiments of data storage structures usedto store positive pay information. For ease of description, thestructures have been depicted and described as flat tables. As will befamiliar to one of ordinary skill in the art, other configurations andmethods of data storage and data retrieval may also be used withoutdeparting from the spirit of the systems and methods described herein.For example, one or more remote or local relational database systems,linked lists, or other file or data structures may be used to house thepositive pay information.

Furthermore, in other embodiments, one or more different fields and/ordifferent informational content may be used to provide positive pay,register reconcilement, or other authenticating information about thefunds associated with a negotiable financial instrument. For example,other types of reconcilement information useful to a check-cashingentity 105 may be provided by government entities that issue checksand/or by issuers of traveler's checks, money orders, conveniencechecks, and the like.

FIG. 3 is a block diagram depicting one embodiment of a checkauthentication system 100 with a positive pay router 300. As depicted inFIG. 3, a check presenter 305 presents a check or other negotiableinstrument to the check-cashing entity 105 for cashing, deposit,exchange, or the like. The check presenter 305 may be an individual orentity wishing to cash a check or other cashable financial instrument.For example, in one embodiment, the check presenter 305 may be anemployee wishing to cash a paycheck. In other embodiments, the checkpresenter 305 may wish to cash or otherwise exchange a different type ofcheck or financial instrument, such as, but not limited to: a personalcheck or check card, a tax refund check or other government-issued checkor check card, a traveler's check or check card, bank check, officialcheck, convenience check, money order, or other type of cashablefinancial instrument.

In various embodiments, the check-cashing entity 105 comprises an inputsystem that comprises one or more data input devices 307 for inputtinginformation about the check. For example, the data input devices 307 maycomprise a check-scanning device for scanning an electronic image of thecheck or of another document. The data input devices 307 may comprise adevice configured to read a magnetic ink character recognition (MICR)line from the face of the check or other document. The data inputdevices 307 may comprise a graphic device or system configured to obtaininformation about a watermark, barcode, insignia, security number,background pattern, reflective fibers, electronic signal, or otherauthenticating mark or device from a check. The data input devices 307may comprise an input system configured to use optical characterrecognition (OCR) technology. The data input devices 307 may comprise aninput system configured to use magnetic-stripe or other card-readingtechnology. The data input devices 307 may comprise a keyboard, keypad,stylus, touchscreen, or other device for manually entering dataassociated with the proposed check-cashing transaction. The data inputdevices 307 may comprise a voice recognition system, video camera, orother device for verbally entering data associated with the proposedcheck-cashing transaction. The data input devices 307 may comprise adevice or system for obtaining other information useful forauthenticating the check associated with the proposed check-cashingtransaction. Furthermore, in embodiments where the check authenticationsystem 100 is part of a system that provides more comprehensivecheck-related services to the check-cashing entity 105, such astransaction risk assessment, authorization, guarantees, and/orsettlement services, the check-cashing entity 105 may compriseadditional input devices for obtaining data used by other check-relatedservices.

As was described in greater detail with reference to FIG. 1, thecheck-cashing entity 105 communicates a request for authentication ofthe presented check to the check authentication system 100 using acommunications system.

In the embodiment shown-in FIG. 3, the check authentication system 100uses positive pay information to assess the authenticity of the check.In other embodiments, other authentication methods may additionally oralternatively be used to assess the authenticity of the check.

As depicted in FIG. 3, the check authentication system 100 is configuredto communicate with a variety of exemplary embodiments of positive payinformation sources 110, which are depicted individually in FIG. 3 aspositive pay information sources 310-316, and which will be described ingreater detail below. Data received by the check authentication system100 from the check-cashing entity 105 is used by a positive pay router300 that is configured to direct positive pay inquiries to one or moreappropriate positive pay information sources 310-316 and/or otherauthentication information sources 317-318 in order to authenticate thecheck.

For ease of depiction, the positive pay information sources 310-316 inFIG. 3 are shown as maintaining their respective positive pay files 200externally to the check authentication system 100. As was described withreference to FIG. 1, in other embodiments, some or all of the positivepay files 200 used by the check authentication system 100 may be storedinternally to the check authentication system 100.

In FIG. 3, examples of positive pay information sources 110 depictedcomprise banks 310, credit unions 311, other financial institutions 312,employers 313, payroll processors 314, third-party positive pay dataproviders 315, and government positive pay repositories 316. In otherembodiments, other types of entities may, additionally or alternatively,provide access to positive pay information. In FIG. 3, the positive payrouter 300 is further shown as being configured to allow communicationswith two other sources of check authentication information, namely,government authentication systems 317 and other authentication systems318. Such systems may provide other types of authentication, such asauthentication based on encrypted information from the face of thecheck, in addition to or as an alternative to authentication based onpositive pay information.

As will be described in greater detail with reference to FIGS. 4-7, thepositive pay router 300 may access positive pay information from one ormore of the positive pay information sources 310-316, based at least inpart on information received from the check-cashing entity 105. Forexample, in some embodiments, when a single source of positive payinformation 110 is identified for a given check, the router may querythe single source of positive pay information 110. In some embodiments,where positive pay information for a given check may be available frommore than one source 110, the positive pay router may query more thanone source. For example, positive pay information for a given check maybe available from both an employer 313 and from the employer's payrollprocessor 314. As another example, positive pay information for a givencheck may be available from a check-issuer's bank 310 as well as from athird-party positive pay data provider 315. In some embodiments, when itis difficult to identify an appropriate source of positive payinformation 110, the positive pay router 300 may query some or all ofthe positive pay information sources 310-316 available in order tosearch for relevant positive pay information. In some embodiments whereall available positive pay information sources 110 are queried, thecheck authentication system 100 may be implemented without a positivepay router 300.

Based at least in part on positive pay information obtained from theaccessed sources 310-316, the check authentication system 100communicates a message to the check-cashing entity 105 indicatingwhether the check appears to be legitimate and “cashable.” When positivepay information is obtained from more than one positive pay file 200, apossibility exists that the status information 215 from the files 200may provide conflicting reports about the status of the check. In suchcases, in some embodiments, the check authentication system 100 mayattempt to collectively assess the various reports in order to resolvethe conflict, as will be described in greater detail with reference toFIG. 7A. In some embodiments, the check authentication system 100 maytransmit status information from the more than one positive pay file200. In other embodiments, other methods are used to provide anassessment of check authenticity to the check-cashing entity 105.

In various embodiments, a point-of-sale device at the check-cashingentity 105 may be connected to the communications system between thecheck-cashing entity 105 and the check authentication system 100 and mayreceive a message from the check authentication system 100 that isindicative of the positive pay authentication performed for thepresented check. The point-of-sale device may comprise a display and maybe configured to display a message indicative of the authentication onthe display to an operator of the point-of-sale device and/or to thecheck presenter 305. Based at least in part on the message received fromthe check authentication system 100, the check-cashing entity 105 maychoose to accept the check and to give the check presenter 305 anequivalent amount of cash, goods, services, or other agreed uponexchange, minus any applicable service fees. In some embodiments, if themessage received from the check authentication system 100 indicates ahigh level of risk associated with accepting the check, thecheck-cashing entity 105 may choose to decline to accept the check.

FIGS. 4A and 4B are block diagrams of two embodiments of a system foraccessing positive pay information in association with a request to casha check or other negotiable financial instrument. FIG. 4A is a blockdiagram of one embodiment of a system that allows a check authenticationsystem to access externally stored positive pay information. FIG. 4B isa block diagram of one embodiment of a system that allows a checkauthentication system to access internally stored positive payinformation.

As shown in FIGS. 4A and 4B, a check presenter 305 presents a check to acheck-cashing entity 105. In one embodiment, the check-cashing entity105 requests a authentication of the check from a check authenticationsystem 100, based at least in part on positive pay information for thecheck that is available to the check authentication system 100. If thecheck authentication system 100 reports that the check appears to belegitimate and cashable, the check-cashing entity 105 may accept thecheck and pay the check presenter 305 an equivalent amount of cash,minus any fees associated with the transaction.

As was described with reference to FIG. 3, the check presenter 305 maybe an individual or entity wishing to cash or otherwise exchange a checkor other negotiable financial instrument. For example, in oneembodiment, the check presenter 305 may be an employee wishing to cash apaycheck. In other embodiments, the check presenter 305 may wish to casha different type of check or financial instrument, such as, but notlimited to: a personal check, a tax refund check or othergovernment-issued check, a traveler's check, bank check, official check,convenience check, money order, check card, or other type of cashablefinancial instrument.

As depicted in FIGS. 4A and 4B, the check presenter 305 presents a checkto the check-cashing entity 105 for cashing. The check-cashing entity105 obtains information about the check using one or more data inputdevices 307. Data obtained from the check may be obtained using at leastone of a variety of technologies, comprising but not limited to: digitalscanning, optical character recognition, MICR scanning, and manual ororal input based on visual inspection.

The check-cashing entity 105 communicates a request to the remote checkauthentication system 100 for positive pay authentication of the check.The check-cashing entity 105 transmits data associated with the check,which is received by the check authentication system 100 via a datainterface 415. In one embodiment, the data comprises at least one of: abank account number and bank identification number, a check issue date,a check number, an amount, a payee name, and a payor name. The data mayadditionally or alternatively comprise other information useful forlocating positive pay information for the check or for performing otherfunctions.

The check authentication system 100 uses the data received via the datainterface 415 to access positive pay information made available by oneor more sources of positive pay information 110. As was described ingreater detail with reference to FIG. 3, sources of positive payinformation 110 may be employers or other business or governmententities that issue checks, payroll services that manage payrollaccounts for employers, banks that manage payrolls accounts or otherchecking accounts, third-party services that provide positive payinformation on behalf of entities that write checks, or the like.

As shown in FIGS. 4A and 4B, the check authentication system 100 usesthe data received from the check-cashing entity 105 to attempt to accessone or more associated records in a positive pay routing table 400,which stores information useful for allowing the check authenticationsystem 100 to access one or more desired positive pay information files200.

In the embodiments shown in FIGS. 4A and 4B, a record in the positivepay routing table 400 corresponds to a bank account for which positivepay information 100 is accessible to the check authentication system100. The records of the positive pay routing table 400 comprise one ormore fields 405 that may be used as a key for identifying a record thatcorresponds to the presented check, such as a routing table record thatis associated with a bank account on which the presented check has beendrawn. The records of the positive pay routing table 400 furthercomprise one or more fields 410, 420 that may be used by the checkauthentication system 100 to locate at least one positive pay file 200or other repository of information about the account on which the checkwas drawn. For example, when the positive pay file 200 is storedinternally to the check authentication system 100, the one or morefields 420 that provide location information may provide a file name ormemory address at which the positive pay file 200 may be accessed, aswill be described in greater detail below with reference to theindividual description of FIG. 4B.

In the embodiment shown in FIG. 4A, sources of positive pay informationor other reconcilement information 110 maintain positive pay files 200that store information about checks issued by one or more check-issuers,as was described in greater detail with reference to FIG. 1. As shown inFIG. 4A, sources of positive pay information 110 may maintain theirpositive pay files 200 externally to the check authentication system100. One or more communication systems associated with the positive payinformation sources 110 and/or with the check authentication system 100allow for remote communications between the information sources 110 andthe check authentication system 100. Thus, queries may be sent from thecheck authentication system 100 to one or more identified positive payinformation sources 110, and positive pay information regarding thepresented check may be transmitted from the information source 110 tothe check authentication system 100.

In the embodiment of the positive pay routing table 400 depicted in FIG.4A, records of the table 400 comprise an information source field 410that provides routing information to allow the check authenticationsystem 100 to access one or more externally stored positive pay files200 associated with the check. As depicted in FIG. 4A, some records inthe positive pay routing table 400 may associate an account number witha single positive pay information source 110. As further depicted inFIG. 4A, some records in the positive pay routing table 400, such as therecord depicted with account number “765-333,” may associate an accountnumber with more than one source of positive pay information. Forexample, if an employer makes positive pay information available to thecheck authentication system 100 both directly from the employer's bankand via a third-party positive pay information provider, then anassociated record in the positive pay routing table 400 of the checkauthentication system 100 may provide routing information for accessingboth of the information sources 110.

For example, in one embodiment, the information source field 410 mayprovide a uniform resource locator (URL) address or other network-basedaddress or link that allows the check authentication system 100 toaccess the desired positive pay file 200 via the Internet or othercomputer-based system of networked processors. In another embodiment,the information source field 410 may provide a computer-accessibleaddress of a computer server and a file name to request. As anotherexample, the information source field 410 of the positive pay routingtable 400 may provide a telephone number that may be dialed to access ahuman operator, a voice response system (VRS) or other automatictelephone system configured to provide information from a positive payfile 200 associated with the presented check. In other embodiments, theinformation source field 410 of the positive pay routing table 400 mayprovide other types of information useful for locating a desiredpositive pay file 200, as will be familiar to one of ordinary skill inthe art.

Using information from the positive pay routing table 400, the checkauthentication system 100 may access one or more positive pay files 200from one or more identified positive pay information sources 110. Usingadditional data about the check received from the check-cashing entity105, such as a check number associated with the check, the checkauthentication system 100 accesses one or more records in an identifiedpositive pay file 200 that is associated with the check, if such arecord exists.

The check authentication system 100 transmits information obtained fromthe positive pay file 200 about the check to the check-cashing entity105 via the data interface 415. The check-cashing entity 105 may thendecide whether to accept the proposed check-cashing transaction, basedat least in part on the positive pay information received from the checkauthentication system 100.

Referring now to FIG. 4B, the check presenter 305 presents a check tothe check-cashing entity 105 for cashing, as was described above withreference to FIG. 4A. The check-cashing entity 105 communicates with thecheck authentication system 100, which provides a positive payauthentication for the check. Data sent by the check-cashing entity 105is received by the check authentication system 100 via a data interface415. In one embodiment, the data comprises at least one of: a bankaccount number and bank identification number, a check issue date, acheck number, an amount, a payee name, and a payor name. The data mayadditionally or alternatively comprise other information useful forlocating positive pay information for the check.

Data obtained from the check may be obtained using at least one of avariety of technologies, comprising but not limited to: digitalscanning, optical character recognition, MICR scanning, and manual ororal input based on visual inspection.

In the embodiment shown in FIG. 4B, sources of positive pay information110 provide copies of their positive pay files 200 to the checkauthentication system 100 for internal storage and access by the checkauthentication system 100. The positive pay files 200 may be updatedregularly, intermittently, or as suits the preferences of the checkauthentication system 100 and the source of positive pay information110.

In some embodiments, the check authentication system 100 may storeseparate positive pay files 200 internally for individual sources ofpositive pay information 110, as depicted in FIG. 4B. In otherembodiments, the check authentication system 100 may join more than onepositive pay file 200 received from one or more sources of positive payinformation 110 into a consolidated positive pay file 200.

The check authentication system 100 may use the data received by thedata interface 415 to access at least one associated record in thepositive pay routing table 400. The embodiment of the positive payrouting table 400 depicted in FIG. 4B provides information that allowsthe check authentication system 100 to access one or more internallystored positive pay files 200 associated with the check, if such filesexist and if the files .200 are identified as such, as will be describedin greater detail with reference to FIG. 7B.

As depicted in FIG. 4B, the records of the positive pay routing table400 comprise two fields: an account number field 405 and a fileidentification field 420. Using information about an account numberreceived by the data interface 415, the check authentication system 100attempts to identify at least one associated, internally stored positivepay file 200. In one embodiment, the file identification field 420stores a computer memory address at which the desired positive pay file200 is stored. In other embodiments, other methods for providinginformation to enable locating a desired positive pay file 200 areimplemented using the positive pay routing table 400.

The check authentication system 100 accesses the desired internalpositive pay file 200, and, using data received from the check-cashingentity 105, accesses at least one record associated with the check, ifone exists.

The check authentication system 100 transmits information obtained fromthe positive pay file 200 about the check to the check-cashing entity105 via the data interface 415. The check-cashing entity may then decidewhether to accept the proposed check-cashing transaction, based at leastin part on the positive pay information received from the checkauthentication system 100.

FIGS. 4A and 4B depict embodiments in which the positive pay routingtable 400 provides access information for positive pay files 200 thatare stored either externally or internally to the check authenticationsystem 100, respectively. In other embodiments, at least one source ofpositive pay information 110 may choose to maintain its positive payfile 200 externally to the check authentication system 100, and at leastone source of positive pay information 10 may choose to provide itspositive pay file 200 to the check authentication system 100 forinternal storage. In such a case, the positive pay routing table 400 mayprovide routing information for accessing both internally and externallystored positive pay files 200.

FIG. 5 is a block diagram depicting one embodiment of a checkauthentication system 100 that assesses the authenticity of presentedchecks and other negotiable instruments based at least in part onpositive pay information accessed via a system of multiple tiers ofpositive pay routing tables 400, 500. In the embodiment shown in FIG. 5,the check presenter 305 presents a check or other negotiable instrumentto a check-cashing entity 105 for acceptance. The check-cashing entity105 obtains information about the check, about the check presenter 305,and about other aspects of the proposed check transaction using one ormore data input devices 307. In the embodiment shown in FIG. 5, anoperator at the check-cashing entity 105 inputs a code signifying a typeof negotiable instrument being presented for acceptance. For example, inone embodiment, the operator uses a keyboard or touchscreen to enter a‘G’ if the negotiable instrument is a government check, an ‘M’ if thenegotiable instrument is a money order, an ‘L’ if the negotiableinstrument is a payroll check, a ‘P’ if the negotiable instrument is apersonal check, and so forth.

The check-cashing entity 105 then transmits information about theproposed transaction to the check authentication system 100.

As depicted in FIG. 5, the check authentication system 100 comprises asystem of routing tables 400, 500 and positive pay files 200. In theembodiment shown in FIG. 5, the check authentication system 100 accessesa check type routing table 500 and uses the code input by the operatorat the check-cashing entity 105 to direct a search for associatedpositive pay, reconcilement, or other authentication information for thepresented negotiable instrument.

In the embodiment shown in FIG. 5, the check type routing table 500comprises two fields: a code field and a link field. The code field isused to identify a record in the table 500 that matches the type of thepresented negotiable instrument. The link field provides an associatedlink to a more specialized routing table 400. For example, in FIG. 5,three additional types of routing tables 400 are depicted: a governmentcheck routing table, a payroll check routing table, and a personal checkrouting table. In addition, FIG. 5 depicts a money order authenticationsystem 510, not based on positive pay information, that assesses theauthenticity of money orders presented for cashing or other processing.The money order authentication system 510 is depicted in order toexemplify embodiments in which forms of authentication other thanreconcilement information may be used for at least some of theauthentication requests. In other embodiments, a specialized routingtable 400 and reconcilement information file 200 may be maintained formoney orders.

As shown in FIG. 5, if information about a check is received by thecheck authentication system 100, together with a code of ‘G,’ the checkauthentication system 100 may access the associated record in the checktype routing table 500 where it is directed by the link in the linkfield to the government check routing table 400. Using a bank accountidentifier, or other suitable method of categorization andidentification, if available, the check authentication system 100 mayidentify one or more suitable records in the government check routingtable 400 and may follow links in the record to one or more sources ofpositive pay information, such as Government Positive Pay Repositories Gor H 316, or Government Authentication System I 317.

Similarly, if information about a check is received by the checkauthentication system 100, together with a code of ‘P,’ the checkauthentication system 100 may access the associated record in the checktype routing table 500 where it is directed by the link in the linkfield to the personal check routing table 400. Using a bank accountidentifier, or other suitable method of categorization andidentification, if available, the check authentication system 100 mayidentify a suitable record in the personal check routing table 400 andfollow one or more links in the record to one or more sources ofpositive pay information, such as Bank A 310, Credit Union B 311, orBank C 310 depicted in FIG. 5.

If information about a check is received by the check authenticationsystem 100, together with a code of ‘L,’ the check authentication system100 may access one or more associated records in the check type routingtable 500 where it may be directed by a link in the link field to thepayroll check routing table 400. Using a bank account identifier, orother suitable method of categorization and identification, ifavailable, the check authentication system 100 may identify a suitablerecord in the payroll check routing table 400 and may follow one or morelinks in the record to one or more sources of positive pay information,such as the internally stored positive pay files 200 for PayrollProcessor D and for Large Employer E, or to the externally storedpositive pay files available from Bank C 310 or from Payroll Processor F314 depicted in FIG. 5.

As depicted in FIG. 5, if information about a negotiable instrument isreceived by the check authentication system 100, together with a code of‘M,’ the check authentication system 100 may access one or moreassociated records in the check type routing table 500 and may bedirected by one or more links in one or more link fields to the moneyorder authentication system 510, where authentication assessment for themoney order can be carried out.

In some embodiments, the check authentication system 100 may access asingle positive pay file 200 in response to a request for authenticationof a presented check. In some embodiments, the check authenticationsystem 100 may accesses a plurality of positive pay files 200 inresponse to a request for authentication of a presented check.

For example, in one hypothetical situation, a presented check may beidentified as a government check or check card, but sufficientinformation may not be available to identify which of a plurality ofgovernment sources 316, 317, if any, may hold information about thecheck. In some embodiments, the check authentication system 100 may beconfigured to access a plurality of the government sources 316, 317 withqueries for associated positive pay information and may receive morethan one positive pay status report regarding the check in question.When positive pay status reports are received from a plurality ofsources, the check authentication system may use one or more systems andmethods for aggregating or otherwise collectively assessing the positivepay status reports to determine an assessment of the authenticity of thecheck, as is described in greater detail with reference to FIG. 7A.

Whether a single information source or a plurality of sources have beenqueried, the check authentication system 100 may then communicate to thecheck-cashing entity 105 an assessment of the authenticity of thepresented check.

The structure and configuration of components and communications linksdepicted in FIG. 5 are one of a plurality of possible structures andconfigurations suitable for the purposes of the check authenticationsystem 100 described herein. Furthermore, other embodiments of thesystems and methods described herein are envisioned which may comprisesome, all, or none of the features described with reference to FIG. 5.Thus, FIG. 5 is intended to aid in describing and clarifying thefeatures and not to limit the description.

FIG. 6 is a flowchart that depicts one embodiment of a process 600 toaccess positive pay information in connection with a proposedcheck-cashing transaction. The process 600, as described in FIG. 6,operates in association with an embodiment of the check authenticationsystem 100 that comprises a single positive pay routing table 400, suchas the embodiments portrayed in FIGS. 4A and 4B. Furthermore, theprocess 600 as described in FIG. 6 is configured to work with simplifiedembodiments of the systems and methods described herein in which apresented check may be associated with at most one identified positivepay file 200 and with at most one record within the identified positivepay file 200.

As will be familiar to one of ordinary skill in the art, otherembodiments of the process 600 may be implemented to operate inassociation with embodiments of the check authentication system 100 thatcomprise more than one routing table 400, one embodiment of which isexemplified in FIG. 5. Furthermore, still other embodiments of theprocess 600 may be implemented to access positive pay information orother reconcilement information, such as from a plurality of informationsources 110, without departing from the spirit of the systems andmethods described herein.

The process 600 begins at a start state and moves to state 610 where thedata interface 415 of the authentication system 100 receives informationfrom a check-cashing entity 105 about a check presented in connectionwith a proposed check-cashing transaction.

Data obtained from the check may be obtained using at least one of avariety of technologies, comprising, but not limited to: digitalscanning, optical character recognition (OCR), MICR scanning,magnetic-stripe reading, other card-reading technology, and manual ororal input based on visual inspection. Data obtained using one or moreof these technologies, or other technologies, may, in some embodiments,be processed so as to “extract” data useful for accessing the desiredpositive pay information. For example, data obtained by digital scanningand/or OCR technologies may undergo such processing in order to extracta bank routing number and account number that allow the checkauthentication system 100 to access the routing tables 400, 500 and thepositive pay files 200 associated with the presented check.

Moving on to state 620, the check authentication system 100 uses atleast some of the received information about the check to locate anassociated record in the positive pay routing table 400. For example, inone embodiment, as depicted in FIGS. 4A and 4B, the check authenticationsystem 100 may use an account number and/or bank routing number receivedwith the check information to identify an associated record within thepositive pay routing table 400. In other embodiments, a payor name maybe read or scanned from the face of the check, and may be used toidentify an associated record. In other embodiments, an identificationnumber printed on the check or other manner of identification may beused to identify an associated record.

As was described with reference to FIGS. 4A and 4B, the records of thepositive pay routing table 400 may comprise one or more fields that maybe used as a key for identifying a record that corresponds to thepresented check, such as a record that is associated with a bank accounton which the presented check is drawn. The records of the positive payrouting table 400 further comprise one or more fields that may be usedby the check authentication system 100 to locate a positive pay file 200or other repository of information about the source of funds on whichthe check is drawn. For example, when the positive pay file 200 isstored internally to the check authentication system 100, the one ormore fields that provide location information may provide a file name ormemory address at which the positive pay file 200 may be accessed.

Moving on to state 630, the check authentication system 100 determineswhether a record associated with the check and/or account was found inthe positive pay routing table 400. If no matching record was found, theprocess 600 moves on to state 680, where a report about the search forpositive pay information associated with the check is returned to thecheck-cashing entity 105. For example, in one embodiment, a code of NORECORD may be returned to the check-cashing entity 105 and no furtheraction is taken. In other embodiments, a NO RECORD report may initiateanother process, such as a process to search one or more positive payfiles 200 in another attempt to locate positive pay informationassociated with the presented check.

Returning now to state 630, if the process 600 determines in state 630that a record associated with the check has been located, the process600 moves on to state 640, where the process 600 uses information fromthe record of the positive pay routing table 400 to locate theappropriate positive pay file 200.

Moving on to state 650, the process 600 uses information obtained aboutthe check to attempt to locate a record in the positive pay file 200that pertains to the presented check. For example, the process may usecheck sequence number information or issue date information obtainedfrom the check-cashing entity 105 and may compare it to informationstored in the check number field 211 and/or the issue date field 212 ofthe positive pay file 200 records to find a record that is associatedwith the check.

Moving on to state 660, the process 600 determines whether a recordassociated with the check has been located in the identified positivepay file 200. If no record matching the presented check is located, theprocess moves on to state 680 where a report about the search forpositive pay information associated with the check is returned to thecheck-cashing entity 105. For example, a code of NO MATCH may bereturned to the check-cashing entity 105. In other embodiments, a NOMATCH report may initiate another process, such as a process to searchone or more additional positive pay files 200 in another attempt tolocate positive pay information associated with the presented check.

In some situations, an accessed positive pay record may match some, butnot all, of the information obtained from the check-cashing entity 105.For example, information in the check amount field 213 may differ fromthe obtained information by an amount that may be large or small.Information in the payee name field 214 may differ slightly orcompletely from a payee name obtained from the check-cashing entity 105.Various embodiments of the systems and methods described herein may beconfigured to address the situation of a partial positive pay match in avariety of manners, as will be familiar to one of ordinary skill in theart.

In some embodiments, a failure to locate the desired routing informationin state 630 and a failure to locate the desired record in theidentified positive pay file 200 in state 660 may be reported to thecheck-cashing entity 105 in the same manner, such as by using the samecode.

In other embodiments, a failure in state 630 is reported differentlythan is a failure in state 660. A failure to locate the desired routinginformation in state 630 may indicate that the check-issuer associatedwith the check does not make positive pay information available or thatthe check authentication system 100 does not have access to theinformation. Thus, the lack of information may represent little if anyindication as to the authenticity of the check, although somecheck-cashing entities 105 may prefer to cash checks for which positivepay information is available.

A failure to locate the desired record within the positive pay file 200in state 660 may indicate that although positive pay information isavailable for the account on which the check is purportedly drawn, norecord matching the presented check exists in the file. The lack ofdesired information in this situation may indicate that the check hasbeen fraudulently prepared, or, less sinisterly, that the positive payfile 200 does not accurately represent a current list of checks issuedby the check-issuer.

In various embodiments, these results, and other possible results,examples of which will be described below, may be reported to thecheck-cashing entity 105 and may initiate further actions as suits thepreferences of the check-cashing entity 105 and the check authenticationsystem 100.

Returning now to state 660, if the process 600 determines in state 660that a record associated with the check has been located in the positivepay file 200, the process moves on to state 670, where the process 600compares information about the check received from the check-cashingentity 105 with information in one or more of the fields 209-215 of therecord in order to determine a check status. For example, information inthe status field 215 of the record may be accessed in order to determinewhether the check is listed as being available for payment or not.Furthermore, the amount of the presented check may be compared with thevalue stored in the amount field 213 to ensure that the amount of thecheck has not been altered. Similarly, the payee name associated withthe presented check may be compared with a name stored in the payee namefield 213.

In one embodiment, if the status field 215 indicates that the check isavailable for payment and if the compared fields provide a match for thereceived check information, then a check status of MATCH may bedetermined. In one embodiment, if the status field 215 indicates thatthe check is available for payment and if some, but not all, of thecompared fields provided a match for the received check information,then a check status of PARTIAL MATCH may be determined.

If the status field 215 indicates that the check is not available forpayment, then a check status indicative of the information in the statusfiled 215 may be determined. For example, in some embodiments, a checkstatus of ITEM PAID, ITEM STOLEN, or ITEM STOPPED may indicate,respectively, that the check has been paid, stolen, or is subject to astop-payment order. In some embodiments, any status indicating that thecheck is not available for payment may result in a check statusdetermination of UNAVAIL. In other embodiments, other methods ofdetermining a check status may be carried out, as suits the preferencesand agreements of the check-cashing entity 105 and the checkauthentication system 100, without departing from the spirit of thesystems and methods described herein.

From state 670, the process moves on to state 680, where a report of thecheck status may be transmitted to the check-cashing entity 105 beforethe process 600 ends.

The flowchart of FIG. 6 describes one embodiment of the process 600 toaccess positive pay information in connection with a proposedcheck-cashing transaction as comprising various states in which variousfunctions are carried out. As will be familiar to one of ordinary skillin the art, in other embodiments, the process 600 may be executed usinga different order, configuration, or set of states, and the states ofthe process 600 may perform the functions differently from theembodiment of FIG. 6, without departing from the spirit of the process600.

FIG. 7A is a flowchart depicting a process 700 for accessing andcollectively assessing positive pay information from a plurality ofpositive pay information sources 110. Beginning from a start state, theprocess moves to state 705, where the check authentication system 100receives from the check-cashing entity 105 information about a check orother negotiable instrument for which the check-cashing entity 105 isrequesting authentication.

The process moves to state 710 where the check authentication system 100uses the information about the check to identify one or more positivepay information sources 110 that may hold information about the check.As was described with reference to FIGS. 4A and 4B, in some embodimentsa bank routing number from the check may direct the process 700 toaccess one or more positive pay information sources 110 associated withthe bank routing number. As was described with reference to FIG. 5, insome embodiments, information indicating that the check is a payrollcheck or that the check is a government check, or other known type ofcheck, may direct the process 700 to access one or more positive payinformation sources 110 that are deemed to be likely sources of thedesired positive pay information. For example, if the negotiableinstrument is a traveler's check or a money order, information to thateffect may lead the process 700 to identify other sources of positivepay or other relevant reconcilement information useful forauthentication of the negotiable instrument. In other embodiments,reconcilement information sources 110 may be identified for a givenauthentication request based on other factors.

As depicted in the embodiment of FIG. 7A, the process 700 identifies oneor more positive pay information sources 110 and queries themsequentially until the identified sources 110 have been accessed, oruntil the process 700 otherwise identifies that no more sources 110 areto be accessed, as will be described in greater detail below withreference to the remainder of FIG. 7A and with reference to FIG. 7C. Insome embodiments in which more than one source of positive payinformation 10 is identified and in which sources are accessedsequentially, the identified sources 110 may be ordered in a prioritizedlist so that sources deemed potentially more likely to provide thedesired positive pay information or more likely to meet other criteriamay be queried before sources that are deemed to be less beneficial.Thus, for example, if queries are carried out until the desiredinformation is located, the speed of a search for positive payinformation may be enhanced by shortening the search with an orderedlist. As will be described with reference to FIG. 7B, described below, avariety of factors may influence a process to identify and/or toprioritize positive pay information sources for authentication of apresented check.

Moving on to state 715, the process 700 determines whether anyidentified positive pay information sources 110 remain to be accessed.As will be described in greater detail with reference to FIG. 7C below,a variety of factors may influence a determination whether to continue asearch for positive pay information in association with authenticationof a presented check. In state 715, if at least one identified positivepay information source 110 remains to be accessed, the process 700 movesto state 720 where the process 700 accesses positive pay informationfrom the next identified positive pay information source 110.

Moving on to state 725, the process 700 compares information obtainedfrom the accessed positive pay file 200 to information about the checkthat was obtained in association with the check from the check-cashingentity 105, in an attempt to determine the status of the check. Invarious embodiments, the process 700 may search for a record associatedwith the check in the accessed positive pay file 200 based on a checknumber, issue date, bank account identifier, payee identifier, payoridentifier, or other suitable field or combination of fields. Once arecord is identified that appears to match the check in question, theprocess may perform additional checking to help ensure that the check islegitimate and unaltered. For example, information about the amount andpayee name for the presented check may be compared with information inthe amount field 213 and the payee name field 214 of the positive payfile 200 to ensure that neither the amount nor the payee name for thecheck have been altered. As was described with reference to FIG. 6, invarious embodiments, situations in which a partial match with a recordin the positive pay file 200 is found may be handled in a variety ofways, as suits the preferences of the check authentication system 100,the check-cashing entity 105, and/or other interested parties withoutdeparting from the spirit of the systems and methods described herein.

Moving on to state 730, a report of the status determination carried outin state 725 is stored. For example, if a record matching the check waslocated, and if the status field 215 and additional verification carriedout by the process 700 indicate that the check appears to be legitimate,then the report comprises an indication to that effect. Likewise, if thestatus field 215 and/or additional verifications performed indicate aproblem with the check, the report comprises an indication to thateffect. Furthermore, if no record associated with the check was found,the report may comprise an indication to that effect.

From state 730, the process 700 returns to state 715, where the process700 once again determines whether another identified positive payinformation source 110 is to be accessed. If the process 700 determinesthat another identified positive pay information source 110 is to beaccessed, the process 700 moves again to state 720 where the process 700accesses the next identified positive pay file 200 and cycles againthrough states 720, 725, and 730.

If, in state 715, the process 700 determines that no identified positivepay information sources 110 remain to be accessed, the process 700 movesto state 735, where the reports from the accessed positive pay files 200are used in order to determine a status result to transmit to thecheck-cashing entity 105.

From state 735, the process 700 moves to state 740, where the process700 determines if any conflict exists amongst the status reports storedfor the transaction.

For ease of description, the process 700 as depicted in the flowchart ofFIG. 7A assumes an embodiment in which status report codes aresimplified to a set of three possible codes: POSITIVE for when a recordis found in the positive pay file 200 that matches the check and thatindicates that the check is authorized for payment; NEGATIVE for when arecord is found in the positive pay file 200 that matches the check andthat indicates that the check has already been paid or is otherwise notauthorized for payment; and UNCERTAIN for when no matching record isfound in the positive pay file 200 or for when a partially matchingrecord is found. As will be familiar to one of ordinary skill in theart, the systems and methods described herein may be modified withoutundue experimentation to accommodate other sets of status codes,including sets that comprise fewer than three, greater than three, orexactly three status codes, and to accommodate situations in whichvarious identified positive pay information sources 110 employ differentsets of status codes.

Returning now to the example illustrated in FIG. 7A, if, in state 740,the status reports share the same code, that is, if no conflict existsamongst the status reports, the process 700 moves from state 740 tostate 741.

In state 741, the process 700 determines whether the status report codeshared by the reports is UNCERTAIN. If the status report code isdetermined not to be UNCERTAIN then, by implication, the status reportsare unanimously POSITIVE or unanimously NEGATIVE. In the embodimentdepicted in FIG. 7A, if the status report code is determined not to beUNCERTAIN, the process 700 assigns a status report code that matches theunanimous code and moves on to state 742.

Returning to state 741, if the status report code is UNCERTAIN, then, byimplication, no identified positive pay file 200 holds a POSITIVE or aNEGATIVE record associated with the check. In the embodiment depicted inFIG. 7A, the process 700 moves to state 743 where an authenticationstatus result of NEGATIVE is assigned for the transaction, and theprocess 700 moves on to state 742. In other embodiments, one or more ofvarious other actions may take place when the status report code isUNCERTAIN. For example, an authentication status result of POSITIVE maybe assigned for the transaction; a message that no authentication statusresult can be determined may be returned to the check-cashing entity105; additional information may be requested from the check-cashingentity 105 in order to attempt another search for positive payinformation; an authentication status result of UNCERTAIN may bedetermined. Thus one or more rules for determining a method ofprocessing status result codes may be used by the check authenticationsystem 100 as is deemed beneficial to the check authentication system100 and the check-cashing entity 105.

Returning now to state 740, if the process 700 determines that conflictdoes exist amongst the stored status reports, that is, if the statusreports are not unanimous, then the process 700 moves on to state 744,where the process 700 determines if at least one status report comprisesa NEGATIVE code.

If at least one status report comprises a NEGATIVE code, the process 700moves on to state 745, where a authentication status result of NEGATIVEis assigned for the transaction, and the process 700 moves on to state742.

Returning now to state 744, if the process 700 determines that there isnot at least one status report with a code of NEGATIVE, then theimplication is that the status reports comprise a mix of status codesPOSITIVE and UNCERTAIN. The process 700 moves on to state 746, where aauthentication status result of POSITIVE is assigned for thetransaction, and the process 700 moves on to state 742.

In state 742, the authentication status result may be reported to thecheck-cashing entity 105 and/or may initiate further actions as suitsthe preferences of the check-cashing entity 105 and the checkauthentication system 100.

FIG. 7A depicts one embodiment of a process 700 to collectively assesspositive pay information from a plurality of positive pay informationsources 110. The process 700, as described in FIG. 7A, comprises variousstates in which various functions are carried out. As will be familiarto one of ordinary skill in the art, in other embodiments, other schemesor set of rules for collectively assessing positive pay information froma plurality of positive pay information sources 110 may be implementedwithout departing from the spirit of the systems and methods describedherein. Thus, the process 700 may be executed using a different order,configuration, or set of states, and the states of the process 700 mayperform the functions differently from the embodiment of FIG. 7A.

For example, although the process 700 is depicted in the flowchart ofFIG. 7A as identifying and subsequently sequentially accessing sourcesof positive pay information 110, in one embodiment, the process 700identifies a first source of positive pay information 110, accesses thefirst source 110, and, if the desired information is not available fromthe source, the process 700 identifies and accesses a second potentialsource of positive pay information 110, and so on.

In other embodiments, the check authentication system 100 broadcastsrequests for positive pay information about a check to availablepositive pay information sources 110, or to an identified subset of thesources 110, and waits for responses from the sources 110. In one suchembodiment, the process 700 waits for responses from the sources 110 towhom requests were broadcast. In another such embodiment, the process700 waits until a pre-determined time limit is reached, and collectivelyassesses the responses received within the time limit. In anotherembodiment, the process 700 waits until a POSITIVE or a NEGATIVEresponse is received, and reports the POSITIVE or the NEGATIVEauthentication status result to the requesting check-cashing entity 105.In yet another embodiment, the process 700 assumes that the status codefrom a source 110 is POSITIVE, unless a message indicative of anothercode is received from the source 110.

As another example of alternative embodiments of the process 700, ratherthan storing a status report when a positive pay file 200 is accessedand compiling the status reports when no positive pay files 200 remainto be accessed, as is described with reference to states 730 and 735 inFIG. 7A, other embodiments of the process 700 may update the statusresult as each new status report is obtained from a source of positivepay information 110, without storing the newly obtained status report.The update process may operate to produce the same results as theexample scheme depicted in states 740-746 or in accordance with one ormore other update schemes.

Furthermore, in one embodiment, the process 700 resolves a conflictbetween POSITIVE status reports and NEGATIVE status reports bymaintaining counts for each of the status report types and bydetermining that the status result to be reported to the check-cashingentity 105 will be assigned to match the status report type with thehigher count.

In embodiments where the status fields 215 of the accessed positive payfiles 200 comprise a date associated with the status, the process 700may choose a most recently dated status, may weight the stored statusreports based on how recent is the associated date in the status field215, or may use the date information from the status field 215 inanother manner to assist in determining a status result to report to thecheck-cashing entity 105.

Thus, a variety of embodiments exist for the process 700 to collectivelyassess positive pay information from a plurality of positive pay sources110, comprising both those embodiments described herein as well asothers as will be familiar to one of ordinary skill in the art.

FIG. 7B depicts exemplary factors 750-763 that may influence the process710 to identify and/or prioritize positive pay information sources 110for authentication of a presented check. By way of background, as wasdescribed with reference to FIG. 1, in various embodiments, the checkauthentication system 100 and the check-cashing entity 105 enter into aservice agreement in which the check authentication system 100 providespositive pay authentication services to the check-cashing entity 105that may be customized to suit service preferences and guidelinesexpressed by the check-cashing entity 105. Thus, the exemplary factors750-763 depicted in FIG. 7B may influence the process 710 to identifyand/or prioritize the list of positive pay information sources 110 forquerying differently, based at least in part on the preferences andcharacteristics of the service agreements entered into by the checkauthentication system 100 and the check-cashing entity 105.

For ease of description and conceptualization, the factors 750-763 arepresented as being divided into three categories: factors 750-755 thatare based on characteristics of the individual positive pay informationsources 110, factors 756-760 that are based on data associated with thetransaction for which check authentication is being requested, andfactors 761-763 that are based on preferences of the check-cashingentity 105 requesting the authentication. In other embodiments, otherfactors and/or categories of factors may additionally or alternativelybe used to identify and/or to prioritize the access of positive payinformation sources 110 by the check authentication system 100.

As depicted in FIG. 7B, several factors 761-763 may be associated withpreferences and characteristics of the check-cashing entity 105 thatsubmits the authentication request. Factors such as the check-cashingentity's 105 declared level of risk tolerance 761, preference for speedof response 762, and/or monetary cost considerations 763 may influencethe selection and/or prioritization of information sources 110 toaccess. For example, a preference on the part of the check-cashingentity 105 for very fast processing of authentication requests, possiblyespecially so during certain seasons, such as during a region's touristor other busy season, may influence a decision to select one or a fewsources 110, or to place sources that are known to provide speedyresponses to queries towards the beginning of the ordered list ofsources 110 to access. As another example, a very low level of tolerancefor risk 761 on the part of the check-cashing entity 105, perhaps basedon a high incidence of fraudulent check cashing attempts, may lead to amore thorough selection of sources 110. Similarly, monetary costconsiderations 763 may influence the selection of sources 110 when atleast some of the identified sources 110 make their reconcilementinformation available for fees of different amounts. For example, anemployer 313 may choose to provide free access to data from its positivepay files 200 as part of an effort to reduce its exposure to fraudulentchecks, while a third-party positive pay data provider 315 may, for afee, provide access to positive pay files 200, possibly from a largenumber of check-issuers, and possibly comprising positive pay files 200for the employer 313.

If, in the previous example, accessing positive pay information directlyfrom the employer 313 is a time-consuming and error-prone process, whileaccessing the information via the third-party positive pay data provider315 is more efficient and expedient, the check authentication system 100may select one or both of the sources 110 based at least in part onknowledge of these characteristics as well as on an appropriate balanceof the check-cashing entity's preferences regarding speed 762, cost 763,and risk tolerance 761.

In addition to or as an alternative to the factors 761-763 cited above,a check-cashing entity 105 may have other preferences that affectselection and/or prioritization of reconcilement information sources 110for a given check authentication request. For example, the entity 105may have special relationships with one or more information sources 110that affect its desired choice of sources; the entity 105 may requestspecial handling of certain types of checks; the entity 105 may have aservice agreement with the check authentication system 100 that is tiedin with other check-related services, such as check guarantee services,that affect the choice of positive pay information sources for a givenauthentication transaction, and so on.

As further depicted in FIG. 7B, knowledge on the part of the checkauthentication system 100 regarding characteristics of the informationsources 110 from which it requests reconcilement information mayinfluence the selection 710 of positive pay information sources 110 forauthenticating a presented check. For example, a positive payinformation source 110 may be associated with a given type of check,such as government checks or checks issued by a known payroll processor,and may be of more potential value in searches requesting this type ofinformation. Thus, a type 750 of a source 110 may be a factor in aselection and/or prioritization of sources 110.

The size 751 of a positive pay information source 110 may influencewhether it is selected for a given search. For example, in someembodiments of the selection process 710, if the source 110 is deemed tobe more comprehensive than other available sources 110, thusrepresenting a better use of time, processor, financial, and/or otherresources allocated for the authentication search, it may be given ahigher priority in a list of identified sources 110. On the other hand,if the source's size is associated with a reduction in response speed752, another possible factor, then the source 110 may be given a lowerpriority in some situations.

A known reputation for reliability 753, or a lack thereof, may be afactor in some embodiments of the selection process 710, and may bebalanced with and against the influences of other factors 750-763.

A location 754 associated with the positive pay information source 100may influence the selection of positive pay information sources 110 fora given positive pay information request. Location 754 as a factor mayrefer to whether the positive pay file 200 is located internally orexternally to the check authentication system 100. Additionally oralternatively, location 754 as a factor may refer to a geographical areaof coverage associated with the information available from the source110. For example, if a given payroll processor 314 makes positive payinformation available in comprehensive files based on geographic region,the check authentication system 100 may choose to give a higher priorityto the file associated with the geographic region from which the checkto be authenticated is believed to have been issued. In otherembodiments, other location-related characteristics 754 associated withthe positive pay information sources may be used as factors in a process710 to select and/or to prioritize positive pay information sources 110.

As described above, providers of positive pay and other reconcilementinformation may charge a fee for access to the information that theystore, and monetary cost 755 associated with accessing a given source110 of information may influence the selection and/or prioritization ofthe source 110.

Other positive pay information source characteristics may be taken intoconsideration in addition to, or as an alternative to, the exemplarypositive pay information source characteristics 750-755 described withreference to FIG. 7B. For example, knowledge about how a given positivepay information source 110 categorizes and reports on the status of itschecks may be relevant as an indicator of the accuracy of the source110. As another example, if information is available regarding a date ortime in which data in a positive pay information source 110 was mostrecently updated, this information may be used to in identifying and/orprioritizing positive pay information sources 110 for querying. Thus, inone embodiment, even if a positive pay information source 110 is knownto frequently have data that is less current than desired by acheck-cashing entity 105, its data may be acceptable if known to havebeen very recently updated.

As still further depicted in FIG. 7B, the task of identifying and/orprioritizing positive pay information sources 110 for querying inassociation with a request for check authentication may be influenced byfactors 756-760 associated with the specific check-cashing transactionin question. Information about a check type 756, a check amount 757, atransaction time and/or date 758, a transaction location 759, and/or acheck-cashing entity type 760 associated with a transaction for whichauthentication is requested may individually or in combination influencethe selection 710 of positive pay information sources 110 forauthenticating the presented check. Transaction data factors 756-760,especially when used in conjunction with historical data that the checkauthentication system 100 may possess regarding past check-cashingtransactions and in conjunction with check-cashing entity preferences761-763, may influence selection and/or prioritization of sources 110 atleast in part due to their association with known levels of risk andfraud patterns.

For example, as described with reference to FIG. 5, data about a checktype 756 associated with a presented check or other negotiableinstrument may influence a process to identify positive pay informationsources 110 for use in authenticating the negotiable instrument. Thatis, in some situations, knowledge of a type 756 associated with anegotiable instrument may assist a check authentication system 100 tofocus on sources with a higher likelihood of storing the desiredinformation. In various embodiments, check type 756 information maycomprise information about whether the negotiable instrument is apayroll check, a government check, a personal check, traveler's check, amoney order, or the like. Check type 756 for payroll checks may also, insome embodiments, refer to a payroll processor who processes the checksand who may make positive pay information about the checks available. Insome embodiments, check type 756 information may refer to a bank orother financial institution holding the account on which the check isdrawn. In other embodiments, check type 756 may be defined to categorizechecks in other ways as is deemed desirable for accessing positive payor other reconcilement information about the checks.

As another example, a check-cashing entity 105 may have a lower risktolerance 761 when the check amount 757 is higher, and may be willing toaccept a higher monetary cost 763, 755 and a lower speed of response762, 752, especially for information that is more reliable 753. Asanother example, a check-cashing entity 105 whose type 760 is a gasstation convenience store may similarly prefer to expend more resourceson a request for authentication information for a transaction that takesplace at a historically riskier time and/or date 758, such as aftermidnight or near the end of the month, if a very large, local employerissues payroll checks on the 1^(st) and 15^(th) of the month. Thelocation 759 of a proposed check-cashing transaction may furtherinfluence the selection 710 of positive pay information sources 110 forauthenticating a presented check, serving to increase or decrease theeffect of other factors 750-763.

Thus, FIG. 7B describes an exemplary set of factors 750-763 that mayinfluence a process 710 for selecting and/or prioritizing positive payinformation sources 110 for querying in a search for positive pay statusinformation. In other embodiments, some, all, or none of the factors750-763 described, possibly with additional or alternative factors, mayinfluence the process 710, without departing from the spirit of thesystems and methods described herein.

By way of background for FIG. 7C, as was described with reference toFIG. 7A, in some embodiments of the process 700 to access andcollectively assess status information from a plurality of positive payinformation sources 110, a set of sources 110 is identified andsubsequently accessed sequentially for positive pay status informationregarding the presented check. Reports received from the sources 110 maybe stored and collectively assessed for determining a result to transmitto the requesting check-cashing entity 105. In various such embodiments,the process 700 determines whether to access the whole set of identifiedsources 110 or whether to access a subset of the identified sources 110.In other embodiments of the process 700, positive pay informationrequests may be broadcast to the set of identified sources 110, andresponses received may similarly be collectively assessed, either whenresponses from the whole set of sources 110 has been received or when asubset of the sources 110 has responded. In still other embodiments ofthe process 700, the check authentication system 100 may identify andaccess an individual positive pay information source 110, obtaining andstoring a report, before determining whether to identify and accessanother source 110. In other embodiments, positive pay informationsources 110 may be accessed, and the status reports obtained from themmay be collectively assessed according to another scheme.

The process 715 to determine when to continue a search for positive payinformation may apply to any of the above-mentioned embodiments. Thus,when the check authentication system 100 accesses a set of sources 110sequentially, the process 715 may determine, after each access, or aftera set of accesses, whether to access one or more additional sources.Similarly, the process 715 may determine how long to continue waitingand to continue collecting responses when positive pay authenticationrequests are broadcast to a set of sources 110.

FIG. 7C is a diagram depicting exemplary factors 770-776 that mayinfluence a process 715 to determine when to continue a search forpositive pay information in association with authentication of apresented check. In various embodiments, and based on one or morefactors 770-776, as exemplified in FIG. 7C, the process 715 maydetermine to continue the search until status reports from the whole setor a pre-determined number of identified sources 110 have been obtained,may determine to continue the search until a pre-determined time limithas been reached, may determine to continue the search until apre-determined level of certainty has been obtained from the reports,and/or may determine to continue the search until another determinationhas been made.

As depicted in FIG. 7C, factors 773-776 based on preferences of thecheck-cashing entity 105 may influence a determination whether tocontinue searching for positive pay status information associated with agiven authentication request. For example, a transaction processingspeed preference 773 may exert influence that serves to limit the searchbased on a time interval between receipt of an authentication request bythe check authentication system 100 from the check-cashing entity 105and transmission of a status result back to the check-cashing entity105. A cost preference 774 may exert influence that serves to limit asearch based on an amount of money spent the search. A risk tolerancelevel 775 may influence a determination to prolong a search in order toobtain a higher degree of certainty regarding a positive pay statusresult or may allow other factors to exert greater influence whenexposure to a higher level risk is tolerated. Similarly, otherpreferences 776 on the part of the check-cashing entity 105 mayinfluence the determination 715.

Transaction data 770 received in association with the authenticationrequest may influence the determination 715 in conjunction with thecheck-cashing entity preferences 773-776 and insofar as the transactiondata 770 may serve to limit the number of available positive payinformation sources 110 that are relevant to the presented check.Information about characteristics of available positive pay informationsources 110 may also influence a determination whether to continuesearching for positive pay status information.

In addition to, or as an alternative to the aforementioned factors770-771, 773-776, knowledge about characteristics of positive payinformation 772 in general may influence a determination whether tocontinue searching for positive pay status information. For example, itmay be known that information stored in the status field 215 of apositive pay file 200 is more likely to be changed over time fromPOSITIVE, indicating that the associated check is available for cashing,to NEGATIVE, indicating that the check has already been cashed, than thestatus information 215 is likely to change from NEGATIVE to POSITIVE.Thus, for a search associated with a very low tolerance for risk, theprocess 715 may determine that continued searching after receiving aPOSITIVE result may be warranted, while continued searching afterreceiving a NEGATIVE result may not enhance the reliability of theauthentication result transmitted to the check-cashing entity 105. Invarious embodiments, a determination whether to continue searching foradditional positive pay information may take into account situations inwhich a partial match with stored positive pay records is found, and maybe able to assess acceptable versus unacceptable deviations from acomplete match. Other examples of knowledge of positive paycharacteristics 772 that may influence a determination 715 whether tocontinue searching for positive pay status information may be based onthe meanings and uses of specific codes employed by various positive paysources 110.

Thus, basing a determination 715 regarding whether to continue a searchfor positive pay information in association with authentication of apresented check on factors such as the factors 770-776 exemplified inFIG. 7C and, additionally or alternatively, on other factors that willbe familiar to one of ordinary skill in the art, allows the checkauthentication system 100 to customize a search for positive pay statusinformation to suit individual proposed check-cashing transactions. Forexample, in some embodiments, information available about positive payand/or check fraud patterns that may be known may be used as a factor ina determination 715 regarding whether to continue querying sources ofpositive pay information. In other embodiments, some, all, or none ofthe factors 770-776 described, possibly with the addition of otherfactors, may influence the process 715, without departing from thespirit of the systems and methods described herein.

Although the foregoing systems and methods have been described withreference to FIGS. 1-7C in terms of certain preferred embodiments, otherembodiments will be apparent to those of ordinary skill in the art fromthe disclosure herein. Additionally, other combinations, omissions,substitutions and modifications will be apparent to the skilled artisanin view of the disclosure herein. While certain embodiments of theinventions have been described, these embodiments have been presented byway of example only, and are not intended to limit the scope of theinventions. Indeed, the novel methods and systems described herein maybe embodied in a variety of other forms without departing from thespirit thereof. The accompanying claims and their equivalents areintended to cover such forms or modifications as would fall within thescope and spirit of the invention.

1. A process for selecting at least one source of positive payinformation to query in association with a proposed check-cashingtransaction, the process comprising: receiving a request from acheck-cashing entity for positive pay authentication for a checkpresented to the check-cashing entity in association with a proposedcheck-cashing transaction; identifying two or more available positivepay information sources; accessing information about at least one of theset consisting of: characteristics of the available positive payinformation sources, characteristics of the proposed check-cashingtransaction, and preferences of the check-cashing entity; and selecting,based at least in part on the request received from the check-cashingentity and on the accessed information, at least one of the availablepositive pay information sources to query.
 2. The process of claim 1,wherein identifying two or more available positive pay informationsources comprises identifying two or more available positive payinformation sources that store information about a type of checkassociated with the transaction.
 3. The process of claim 2, whereinidentifying two or more available positive pay information sources thatstore information about a type of check comprises identifying two ormore available positive pay information sources associated with at leastone of the set consisting of: payroll checks, payroll check cards,government checks, government check cards, insurance checks, personalchecks, personal check cards, other types of check cards, checks issuedby a given payroll processor, checks issued in a given geographicalregion, money orders, and checks drawn on accounts in a given financialinstitution.
 4. The process of claim 1, wherein identifying two or moreavailable positive pay information sources comprises identifying two ormore available positive pay information sources that store informationabout checks associated with a payroll processor associated with thecheck.
 5. The process of claim 1, wherein identifying two or moreavailable positive pay information sources comprises identifying two ormore available positive pay information sources that store informationabout checks issued from an account associated with the check.
 6. Theprocess of claim 1, wherein accessing information about the availablepositive pay information sources comprises accessing, for at least oneof the available positive pay information sources, information about atleast one of the set consisting of: cost associated with accessing theinformation source, a typical response speed of the information source,an assessment of the reliability of information received from theinformation source, a size of the information source, a type of theinformation source, and a location associated with the informationsource.
 7. The process of claim 1, wherein accessing information aboutcharacteristics of the proposed check-cashing transaction comprisesobtaining information about at least one of the set consisting of: anamount associated with the check, a check type associated with thecheck, a date associated with the proposed check-cashing transaction, atime associated with the proposed transaction, a location associatedwith the transaction, and an entity type associated with thecheck-cashing entity.
 8. The process of claim 1, wherein accessinginformation about preferences of the check-cashing entity comprisesaccessing information about at least one of the set consisting of: arisk tolerance level of the check-cashing entity, an authenticationprocess speed preference of the check-cashing entity, and anauthentication process cost preference of the check-cashing entity. 9.The process of claim 1, wherein selecting at least one of the availablepositive pay information sources to query comprises selecting at leastone positive pay information source that satisfies preferences expressedby the check-cashing entity.
 10. The process of claim 1, furthercomprising: querying at least one of the selected positive payinformation sources for positive pay information associated with theproposed check-cashing transaction; receiving from the at least onepositive pay information sources queried at least one positive paystatus report associated with the proposed check-cashing transaction;and based at least in part on the at least one positive pay statusreport received, selecting at least one of the available positive payinformation sources that has not been queried, to query for additionalpositive pay information associated with the proposed check-cashingtransaction.
 11. The process of claim 1, further comprising selecting atleast two available positive pay information sources and compiling anordered list of the selected information sources.
 12. The process ofclaim 11, wherein compiling the ordered list comprises ordering theinformation sources in the list such that information sources determinedto be more likely to store positive pay information about the check,based at least in part on the accessed information, are queried earlierthan information sources determined to be less likely to store positivepay information about the check, based at least in part on the accessedinformation.
 13. The process of claim 11, further comprising compilingthe ordered list based at least in part on the preferences of thecheck-cashing entity.
 14. The process of claim 11, further comprisingcompiling the ordered list based at least in part on preferencesexpressed by the check-cashing entity.
 15. The process of claim 14,wherein compiling the ordered list based at least in part on preferencesexpressed by the check-cashing entity comprises compiling the orderedlist based at least in part on preferences about at least one of the setconsisting of: a risk tolerance level of the check-cashing entity, anauthentication process speed preference of the check-cashing entity, andan authentication process cost preference of the check-cashing entity.16. The process of claim 11, further comprising querying the selectedpositive pay information sources in the order of the ordered list.
 17. Acheck authentication system, comprising: a data interface configured toreceive from a check-cashing entity a request for positive payauthentication in association with a proposed check-cashing transaction,wherein the request comprises information about characteristics of theproposed check-cashing transaction; a computer-accessible storage mediumconfigured to store information about characteristics of one or morepositive pay information sources and information about preferencesexpressed by the check-cashing entity; and a processor programmed toreceive information about the request for positive pay authenticationfrom the data interface, the processor being further programmed toaccess at least a portion of the stored information from thecomputer-accessible storage medium and to select, based at least in parton the information from the data interface and the information from thecomputer-accessible storage medium, a subset of the positive payinformation sources to access in a search for positive pay informationassociated with the proposed check-cashing transaction.
 18. Apoint-of-sale device, comprising: an input system configured to obtaininformation about a proposed check-cashing transaction; a communicationssystem configured to send at least some of the obtained informationabout the proposed check-cashing transaction to a remote system for apositive pay authentication, the communications system furtherconfigured to receive from the remote system a positive payauthentication result associated with the proposed check-cashingtransaction, wherein the positive pay authentication result is based atleast in part on positive pay information accessed from a plurality ofpositive pay information sources selected for querying from amongst aset of at least two available positive pay information sources.
 19. Thepoint-of-sale device of claim 18, further comprising: a displayconfigured to display to an operator of the point-of-sale device amessage based at least in part on the positive pay authenticationresult.
 20. A process for reducing risk associated with accepting acheck offered at a check-cashing transaction, the process comprising theacts of: entering into an agreement with a check authentication systemin which the check authentication system agrees to perform positive paycheck authentications; informing the check authentication system ofpreferences associated with positive pay check authentications;transmitting a positive pay authentication request associated with aproposed check-cashing transaction to the check authentication system;transmitting information associated with the proposed check-cashingtransaction to the check authentication system; receiving from the checkauthentication system data indicative of a positive pay authenticationresult, wherein the positive pay authentication result is based at leastin part on information obtained from at least one positive payinformation source selected from at least two available positive payinformation sources, wherein the selection is based at least in part onthe transmitted information associated with the proposed check-cashingtransaction and on the preferences associated with positive payauthentications; and determining whether to accept the check offered atthe proposed check-cashing transaction, based at least in part on thepositive pay authentication result.
 21. A method of participating in aselection of positive pay information sources for use in conjunctionwith a request for positive pay authentication, the method comprising:providing to a check authentication system information about preferencesregarding positive pay authentications to be performed by the checkauthentication system; providing to the check authentication systeminformation about a proposed check-cashing transaction for whichpositive pay authentication is requested; and receiving from the checkauthentication system a message indicative of a positive payauthentication result that is aggregated from positive pay informationaccessed from at least two positive pay information sources, wherein thesources are selected based at least in part on at least one of the setconsisting of: the provided information about preferences and theprovided information about the proposed check-cashing transaction.
 22. Amethod of participating in a selection of positive pay informationsources for use in conjunction with a request for positive payauthentication, the method comprising: providing to a remote systeminformation about characteristics associated with a source of positivepay information for the purpose of assisting the remote system to selectpositive pay information sources to query from amongst a plurality ofavailable positive pay information sources, wherein the selection isbased at least in part on the provided information about thecharacteristics of the positive pay information source.
 23. A positivepay information source that provides to a check authentication systeminformation useful for assisting the check authentication system in aselection of at least two positive pay information sources to query forauthentication of a check.
 24. The positive pay information source ofclaim 23, wherein the information comprises information about at leastone of the set consisting of: at least one check issuer associated withthe positive pay information source, at least one bank accountidentifier associated with the positive pay information source, at leastone check type associated with the positive pay information source, alocation associated with the positive pay information source, a measureof size of the positive pay information source, a measure of responsespeed of the positive pay information source, a measure of frequency atwhich positive pay information stored by the positive pay informationsource is updated, and a monetary cost associated with obtainingpositive pay information from the positive pay information source.
 25. Areconcilement information source, comprising: a computer-accessiblestorage medium configured to store reconcilement information aboutnegotiable instruments; and a communications system configured totransmit data about the reconcilement information source to a remotesystem that conducts searches for reconcilement information, wherein thecommunications system transmits the data for the purpose of assistingthe remote system to determine whether to query the reconcilementinformation source in a search for reconcilement information.
 26. Thereconcilement information source of claim 25, wherein the communicationssystem is configured to transmit data about at least one of the setconsisting of: at least one issuer of negotiable instruments associatedwith the reconcilement information, at least one account identifierassociated with the reconcilement information, at least one negotiableinstrument type associated with the reconcilement information, alocation associated with the reconcilement information source, a measureof storage capacity of the reconcilement information source, a measureof response speed of the reconcilement information source, a measure offrequency at which the reconcilement information is updated, and amonetary cost associated with making a reconcilement informationrequest.
 27. A process for evaluating the likelihood of a check beinghonored by an issuer of the check, the process comprising: identifying aplurality of positive pay information sources that comprise informationabout checks that check-issuers are willing to honor; and determining aprioritized order for querying at least two of the positive payinformation sources in order to enhance the speed of an evaluation of acheck that has been presented for cashing, wherein the determination ofthe prioritized order is based at least in part on information receivedfrom at least one of the positive pay information sources.
 28. Areconcilement information source, comprising: a computer-accessiblestorage medium configured to store reconcilement information; and acommunications system configured to transmit to a remote system data forthe purpose of enabling the remote system to select reconcilementinformation sources in association with requests for reconcilementauthentication, the data comprising information about at least one ofthe set consisting of: at least one issuer of negotiable instrumentsassociated with the reconcilement information, at least one accountidentifier associated with the reconcilement information, at least onenegotiable instrument type associated with the reconcilementinformation, a location associated with the reconcilement informationsource, a measure of size of the reconcilement information source, ameasure of response speed of the reconcilement information source, ameasure of frequency at which the reconcilement information is updated,and a monetary cost associated with making a reconcilement informationrequest.
 29. A system for selecting at least one source of positive payinformation to query in association with a proposed check-cashingtransaction, the system comprising: means for receiving a request from acheck-cashing entity for a positive pay authentication of a checkpresented to the check-cashing entity in association with a proposedcheck-cashing transaction; means for identifying one or more availablepositive pay information sources; means for accessing information aboutat least one of the set consisting of: characteristics of the availablepositive pay information sources, characteristics of the proposedcheck-cashing transaction, and preferences of the check-cashing entity;and means for selecting, based at least in part on the request receivedfrom the check-cashing entity and on the accessed information, at leastone of the available positive pay information sources to query.